Today we have the European Central Bank (ECB) rate decision, monetary policy statement, and press conference. They are expected to reduce the Main Refinancing Operations Rate from 4.5% to 4.25%. I expect high volatility in the major currency pair.
DXY Chart Technical Outlook (USD Index) – the index broke out of the expanding wedge formation to the downside. The measured move target of 103.67 was achieved. We are now seeing a period of consolidation. Bespoke resistance is located at 104.32. We have a 61.8% retracement level of the last decline at 104.32. I look for rallies to be sold.
