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Tuesday, January 31, 2023

January 31, 2023 at 12:22AM Dollar index breaks out of Channel #DXY

Dollar index breaks out of Channel

The US dollar index made a bold move before the Fed decision by breaking out of a descending channel in the 4-hour time frame. The instrument which tracks US dollar strength across some assets has seen its movement limited in the last 2 weeks after dropping from 103.00. The possible price movement we could anticipate before Wednesday’s showdown are:

The Current breakout from the channel has established bullish interest to explore higher price levels. Traders can wait for a retest of the channel to keep up with the momentum.

With price already primed for more upwards moves in the short term, Sellers will be lurking around 102.500 and 102.84. However, should the price make a shock move back into the channel then the bearish bias remains intact.

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