US Dollar Firms as Markets Await FOMC Meeting Minutes

The US dollar strengthened on Wednesday, climbing back toward its recent multi-month high and fully erasing Tuesday’s losses, effectively reducing the likelihood of a near-term corrective pullback.

Rising oil prices and increased safe-haven demand provided fresh support for the greenback, which remains underpinned by concerns over France’s growing fiscal challenges. These worries risk spreading across the euro area and continue to weigh on the single currency.

Investors are now focused on the release of the latest FOMC meeting minutes for further insight into the Federal Reserve’s policy outlook. Expectations for an October rate hike have been dampened following weaker-than-expected September nonfarm payrolls data, making the minutes particularly important for gauging the Fed’s next move.

Technical indicators on the daily chart continue to signal strong bullish momentum, while a series of recent bullish moving average crossovers reinforce the positive outlook.

A weekly close above 101.94, which marks both the 200-week moving average and the base of the monthly Ichimoku cloud, would strengthen the bullish case. A decisive break above the recent peak at 102.30 would provide an initial signal of trend continuation, while a sustained move through the key Fibonacci resistance at 102.67, representing the 50% retracement of the broader 110.00 to 95.35 decline, would further validate the bullish scenario.

On the downside, strong support is seen at 101.40/50, where the 10-day moving average converges with Tuesday’s low, and this zone is expected to contain any corrective dips.

Res: 102.30; 102.67; 103.00; 103.45
Sup: 101.98; 101.40; 100.95; 100.75