Comprehensive USDX Analysis for December 14, 2023

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the USDX for 12th December 2023. 

USDX Key Takeaways 

• The Fed with a clear attitude: In the early hours of Thursday morning, the Federal Reserve announced that it would once again maintain interest rate stability and sent the clearest signal to date that its aggressive interest rate hikes have ended and a series of interest rate cuts are expected next year. 
• Confusing dot plot: The dot plot shows that eight officials think there will be less than 75 basis points of rate cuts next year, while five officials expect more. This is the most confusing “dot plot” to come out in years. SEP shows that Fed officials expect a median rate cut of 75 basis points next year, a faster pace than forecast in September. 
• Federal Reserve official’s speech: A few hours before the Federal Reserve announced its interest rate decision, U.S. Treasury Secretary Yellen said in an interview with CNBC that it is reasonable for the Federal Reserve to consider cutting interest rates to maintain steady economic growth. Federal Reserve Chairman Jerome Powell said that as inflation continues to fall toward the 2% target, policymakers are now turning their focus to when to cut interest rates. 

USDX Technical Analysis 

USDX Daily Chart Insights

• Stochastic Oscillator: The indicator sent a short signal in the oversold area yesterday, suggesting that the market may usher in a downward trend. 
• Moving average resistance: The 33-day and 65-day moving averages jointly suppressed the U.S. dollar index from further rise, and yesterday’s sharp drop suggested that the bulls’ power has subsided, focusing on short trading opportunities. 

USDX 1-hour Chart Analysis

• Stochastic oscillator: The indicator has fallen and entered the oversold area. Wait for the indicator to leave the oversold area and send out a short signal again before paying attention to short trading opportunities. 
• Fibonacci retracement level: USDX fell rapidly yesterday, and sellers had some motivation to sell and leave. In theory, after a rapid trend, the first target for correction is the 38.2% Fibonacci retracement level. This price is also the previous low support level of 103.198. 

Ultima Markets MT4 Pivot Indicator

• According to the pivot indicator in Ultima Markets MT4, the central price of the day is established at 103.083, 

• Bullish Scenario: Bullish sentiment prevails above 103.083, first target 103.437, second target 104.345; 
• Bearish Outlook: In a bearish scenario below 103.083, first target 102.174, second target 101.820. 

Conclusion 

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