Dollar Index Approaches Key Resistance Amid Fed Decision Jitters

The US dollar index (DXY) has been trading within an ascending channel formation since May, experiencing seven consecutive days of gains. The recent recovery is approaching resistance at the yearly high-day close and July opening range high at 101.59. A breach or daily close above this threshold would be needed to resume the uptrend toward the next major technical consideration at 102.72.

However, the monthly open support rests at 101.22, backed by near-term bullish invalidation at the March high and the 61.8% extension at 100.64/77. Channel support converges on this threshold over the next few days.

The Federal Reserve rate decision is scheduled for Wednesday, with traders expecting no change in rates. However, Warsh's commentary will be closely watched to gauge where the committee sees inflation amid recent energy price surges.