The Dollar Index drops after reaching a strong static resistance. The FOMC could change the sentiment on Wednesday. DXY’s potential growth after the current retreat could help us to buy USD. The DXY price analysis is bullish despite a minor correction. The index plunges at the time of writing after failing to close above the 93.43 static resistance. Technically, the index was somehow expected to drop after registering an amazing rally. Still, the current retreat could only be temporary before resuming its rise. -Are you looking for the best CFD broker? Check our detailed guide- The Dollar Index has accelerated its upside in the short term after the United States retail sales data came better than expected. Personally, I’m waiting for a temporary decline as this could bring new long opportunities in USD. Today, the NAHB Housing Market Index increased from 75 points to 76 points exceeding 74 points expected. Tomorrow, the US is to release the Housing Starts, Current Account, and the Building Permits. First, though, the traders may wait for the FOMC, which will take place on Wednesday. The Federal Reserve is expected to keep its monetary policy unchanged also after a drop in inflation growth. The FOMC Statement, FOMC Economic Projections, and the FOMC Press Conference could really shake the markets and change the sentiment. The FOMC is seen as a high-impact event. The volatility will be huge these days. Get FREE Forex Signals Now! DXY Price technical analysis: False breakout DXY 4-hour chart analysis As you can see on the 4-hour chart, DXY ignored the 93.19 static resistance and climbed near the 93.45 level. Now is located at 93.25, and it may hit and retest the 93.19 former resistance. Technically, it could only test and retest the immediate support levels before jumping higher. 93.08 level is seen as support as well. A new leg higher after ending its current retreat could help us catch new longs in the USD. As you already know, the US Dollar appreciates versus its rivals when the index grows. -Are you looking for forex robots? Check our detailed guide- The Greenback drops versus the other major currencies as long as the index drops. From the technical point of view, DXY’s failure to approach and reach the weekly R1 (93.55) may signal a potential decline even towards the weekly pivot point of 92.93. Looking to trade forex now? Invest at eToro! Trade Forex Now! 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Olimpiu Tuns Olimpiu Tuns Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms. View All Post By Olimpiu Tuns Majors share Read Next USD/JPY Price Analysis: Downfall Looking at 109.0, Awaiting FOMC Olimpiu Tuns 1 year The Dollar Index drops after reaching a strong static resistance. The FOMC could change the sentiment on Wednesday. DXY’s potential growth after the current retreat could help us to buy USD. The DXY price analysis is bullish despite a minor correction. The index plunges at the time of writing after failing to close above the 93.43 static resistance. Technically, the index was somehow expected to drop after registering an amazing rally. Still, the current retreat could only be temporary before resuming its rise. -Are you looking for the best CFD broker? Check our detailed guide- The Dollar Index has accelerated… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.