US Dollar Index flat, FOMC eyed

FXstreet.com (Edinburgh) -The greenback, tracked by the US Dollar index, is trading around Tuesday’s close ahead of the FOMC meeting due later.

DXY remains vulnerable

Its seems that the sharp pullback from multi-year highs beyond 84.70 in early July found strong support around the mid 81.00s, with the index picking up pace to today’s highs around 82.20. In the view of Sebastien Galy, Analyst at Societe Generale, commented “Again most expect the Fed to stay dovish and guarded, again the market does not seem to fully price this in, suggesting the initial reaction should be USD weakness”.

DXY key levels

The index is now trading flat at 81.84 facing the next resistance at 82.00 followed by 82.40 and finally 82.65. On the flip side, a break below 81.50 would expose 81.25 and then 81.00.

Flash: Countdown to FOMC – BMO Capital Markets

The biggest event for the week is today’s FOMC decision. The FOMC’s statement will be released at 2:00 PM EDT – this meeting will not include an update to published economic forecasts or an associated Bernanke press conference, notes Greg Anderson, Global Head of FX Strategy at BMO Capital Markets.
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FOMC decision next: Impact on USD

Last but not least during the American session, the FOMC will announce its monetary policy decision at 18:00GMT.
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