US Dollar gains momentum as Fed meeting gets underway

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US Dollar gains momentum as Fed meeting gets underway
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The US Dollar (USD) is up on Tuesday, with the DXY index rising to 106.

US Dollar is gaining traction, DXY index surged to 106.70. The two-day Fed meeting ends on Wednesday with a monetary policy decision. Mid-tier economic figures from the US came in mixed. US Treasury yields retreat, which may limit the USD’s momentum. 70 on the back of a cautious market mood ahead of the Federal Reserve Interest Rate Decision on Wednesday. In addition, the US reported strong Housing and Confidence data, while Chicago’s PMI from October came in lower than expected.

As long as the index remains above the 20, 100 and 200-day Simple Moving Averages , the outlook on the broader scale will favour bulls, but buyers will probably have a hard time defending the 20-day SMA as momentum weakens. Supports: 106.30 , 106.00, 105.70. Resistances: 106.80, 107.00, 107.30.

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