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DXY in session highs near 99.40

FXStreet (Edinburgh) - The US Dollar Index, which gauges the greenback against a basket of its main rivals, has fully recovered Wednesday’s pullback, currently testing session highs near 99.40.

DXY trimmed losses post-FOMC

The perceived dovish tone from the FOMC statement and press conference by Chairwoman J.Yellen took a toll on the greenback on Thursday, sending the index to multi-day lows around 96.40.

However, the US dollar managed not only to fully revert the deep retracement but also to regain the mid-99.00s today, sending the rest of its G10 peers back to levels pre-FOMC.

There are no further scheduled data in the US economy for the rest of the week, leaving the USD to the mercy of risk trends and developments overseas.

DXY levels to consider

The index is now up 0.82% at 99.35 and a break below 97.91 (low Mar.9) would target 96.89 (low Mar.6) en route to 96.58 (low Mar.5). On the upside, the initial barrier lines up at 100.26 (high Mar.17) ahead of 100.78 (high Mar.13) followed by 101.00 (psychological level).

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