What a day today for traders of the Dollar. With an expected rise in interest rates by the FOMC, market participants found the policy statement as a dovish one and put Dollar under heavy pressure. Selling caused the Dollar index to decline towards 110.40 but Fed Chairman Jerome Powell saved the day for Dollar bulls. His hawkish remarks hinted that another rate rise and Dollar bulls made a comeback. The Dollar index is now trading around 112 making new daily highs relative to the previous six trading sessions. Today's low is now considered a major support level and a turning point if the index pulls back below it. It is the line in the sand between bullish and bearish trend for the near term. The RSI has not reached overbought levels yet. More upside is justified as long as the index is trading above 110.40.
