The DXY found significant weakness last week, trading significantly lower to 106.50 after reaching a historic high of 109.
This weakness is due to
-FOMC members indicated that a 75bps rate hike was the preferred decision, rather than 100bps as initially expected by the market
- The strength of the EURUSD bouncing after testing the parity level
Although sustained DXY weakness seems unsustainable, if price does break below the 106.50 level, further downside can be expected with 105.50 the next support level.
This weakness is due to
-FOMC members indicated that a 75bps rate hike was the preferred decision, rather than 100bps as initially expected by the market
- The strength of the EURUSD bouncing after testing the parity level
Although sustained DXY weakness seems unsustainable, if price does break below the 106.50 level, further downside can be expected with 105.50 the next support level.