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Dollar index (USDX) backs off

Yesterday the rebound in the dollar extended to its best levels of the day after the release of the US FOMC meeting minutes. That rise came as US bonds fell and the markets reappraised the outlook for US monetary policy this year. So, the dollar index (USDX) rose to a high at 102.72, extending its prior gains above a technical resistance level at 102.20. The next hurdle for the index is another Fibonacci correction level at 103.188. That price point represents a 38.2% correction of the fall seen in 2023, from a high at 107.348, to a low at 100.617. However, since peaking last night the dollar has come off the boil in Asian trading today. The index is dropping back below its 21 day moving average (now at 102.56) and below 102.40. That price point just mentioned, at 102.20 could provide support, if this current relapse extends. We shall see on that as the morning further unfolds 
 

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