The US Dollar recovers on Thursday after its brief moment of weakness on Wednesday. Traders were surprised by the dovish Fed, which continued to anticipate three rate cuts this year. The US Dollar Index fell to the lower end of 103.00 before staging a rebound.
Traders should be very well aware that entering a trade in US Dollar means tighter entries and stop losses as volatility in the past three months was only around 6.5%, less than the 14% seen in the three months before The DXY is on track to break back above the 200-day Simple Moving Average at 103.70 before moving back above 104.00. On the upside, 104.96 remains the first level in sight. Once above there, the peak at 104.97 from February comes into play ahead of the 105.00 region with 105.