US dollar index coiling up ahead of Wednesday’s FOMC meeting
Matt Simpson December 14, 2021 2:04 AM
The US dollar index is trading in a symmetrical triangle pattern on the daily chart, with the FOMC meeting tomorrow making a likely catalyst for a breakout.
When prices coil up like they are on the US dollar index (DXY) it is usually an indication that volatility is not far away. And as the fed hold their final FOMC meeting of the year tomorrow, it figures that volatility is low heading into it and will likely increase following the outcome of it. In today’s video we take a look at the daily chart on DXY to highlight key support and resistance levels for when prices finally break out. And, as the US dollar index is weighed around 57% in favour of the euro, a bullish breakout on DXY likely results in a bearish breakout for EUR/USD (and visa versa).
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