DXY Rebounds on Fed Pause and Trade Deal Hopes.

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Macro approach:
- DXY edged higher, recovering earlier losses as the Fed held rates and Powell was cautious.
- Jun cut hopes faded, though markets expect three cuts this year, potentially lifting DXY short-term.
- A potential US-UK trade deal also helps ease bearish sentiment on the dollar.

Technical approach:
- DXY is hovering around the key resistance at around 100.200, confluence with EMA21, indicating a potential short-term correction.
- If DXY closes above the resistance at 100.200, the price may continue to claim to retest the following resistance at 101.800.
- Conversely, closing below the current trendline may lead DXY to retest the swing low at around 98.000.


Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness

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