DXY Retreats Ahead of Fed Meeting

The US Dollar Index (DXY) has retreated from its recent highs and is currently trading at around 101.30 ahead of the Fed's policy meeting on Wednesday.

This comes after three consecutive daily advances, which have left some market participants wondering if the index has met a 'tough nut to crack' in the 101.60-101.70 band, an area close to its yearly highs around 101.80 recorded in late June.

The technical view remains bullish, with price holding above the 55-day, 100-day and 200-day simple moving averages (SMAs), which cluster between roughly 99.1 and 100.3 and reinforce an underlying uptrend.