US Dollar Index Technical Analysis: Thank you Fed

The US Dollar Index (DXY) is turning into a snooze fest after the Fed meeting on Wednesday. The DXY is jumping this Thursday, partly erasing the losses from Wednesday after markets repriced again to three cuts. Traders should be very well aware that entering a trade in US Dollar means tighter entries and stop losses as volatility in the past three months (January 2024 to March 2024) was only around 6.5%, less than  the 14% seen in the three months before (September 2023 to December 2023)

The DXY is on track to break back above the 200-day Simple Moving Average (SMA) at 103.70 before moving back above 104.00. On the upside, 104.96 remains the first level in sight. Once above there, the peak at 104.97 from February comes into play ahead of the 105.00 region with 105.12 as the first resistance. 

Support from the 200-day Simple Moving Average (SMA) at 103.70, the 100-day SMA at 103.54, and the 55-day SMA at 103.53, fell short of providing enough cushion during the Fed meeting.  The 103.00 big figure looks to be rather a level to focus on for future reference when the DXY tanks. In case 103.00 does not hold, 102.48-102.35 comes in with the low of March as a level to watch.