On Wednesday, the US Dollar, represented by the Dollar Index (DXY), declined to its lowest level since June 18 at around 105.20 following the release of robust ADP labor market data. In addition, market participants eagerly anticipate the Meeting Minutes from the June Federal Open Market Committee (FOMC) event, which might influence interest rate expectations.Signs of disinflation and a cooling labor market are becoming evident in the US economy, thereby fuelling belief in a rate cut possibly occurring in September. Federal Reserve (Fed) officials, however, exhibit restraint and maintain their data-dependent stance.
Daily digest market movers: US Dollar loses ground following robust ADP data, markets await FOMC Minutes
DXY technical outlook: Bulls give up and lose 20-day SMA
On Wednesday, the outlook for the DXY turned negative in the short term with both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) now on negative terrain.The highlight is that the bulls lost their position above the 20-day Simple Moving Averages (SMAs). The market should monitor potential fallbacks toward the 105.00 and 104.50 zones. On the upside, the former support of the 20-day SMA at 105.40 is now a resistance line.More By This Author:USD/CHF Holds Steady Around 0.9040 Area, Just Below Over One-Month Top Set On Tuesday
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