USDX

The FOMC is optimistic about the US economy. The labor market indicators sign a further growth. In yesterday's meeting of the FOMC, they decided to cut another $10 billion from its quantitative easing program. The reduction brings the monthly bond purchases to $15 billion mortgage and $20 billion treasuries.

The USD index drifted to 80.35 levels and closed below the 200-day EMA. As we discussed in our previous articles the index made a double top at 80.71 levels. The price is forming a small base around 80.35 levels. The index movement is framed between 80.35-80.71 levels. On the upper side, the price has resistance between 80.67-80.71, above this, it can fly up to 81 and 81.30 levels. On a positional basis, if the price closes the week above 81, it can extend its up move to 82.50 and 84 levels. On the down side, it has support between 80.35-80.30 levels, breaking below 80.30, it can take another support at 80.24 levels. Breaking below 80.24, it can correct to 80.17 and 80.08 levels. A day close below 80.08, the bears will tighten their grip for a correction.