Before the FED

Federal reserve Eagle
Yesterday, regarding U.S. economic data front, the National Federation of Independent Business's Small Business Optimism Index rose to 94.4 in May (vs 92.5 expected), and Wholesale Inventories (final reading) grew 0.3% on month in April (vs +0.4% expected).
Later today, U.S. Federal Reserve will announce its interest rate decision (a target range unchanged at 0.00% - 0.25% is expected). The FED Chairman, Jerome Powell, will then hold a very closely watched press conference.

From a technical point of view, on a daily chart, Dollar Index has broken below the lower boundary of a triangle and remains capped by its declining 50-day moving average (in blue). The daily RSI stands within its selling area. Readers may therefore consider the potential for further weakness as long 99.00 is not broken to the upside. The nearest support would be set at yearly bottom at 94.60. A second one would be set at horizontal support at 93.80.

Source: TradingView, GAIN Capital


Related tags: Forex Forex Fed

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