Post-FOMC Weakness: U.S. Dollar Breakdown Continues After 25bps Cut
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Dean Popplewell4.05K FollowersFollow5ShareSavePlay(4min)CommentsSummaryThe US Dollar took a hit following yesterday's Fed decision, driven by mechanical flows typical after a rate cut.Given the rally to new cycle highs over the past two months, current outflows aren't surprising—benefiting not just the majors, but especially exotic currencies.The cut itself was neither explicitly dovish nor hawkish; communications were solid. Nuthawut Somsuk/iStock via Getty Images By Elior Manier The US Dollar took a hit following yesterday's Fed decision, driven by mechanical flows typical after a rate cut. Given the rally to new cycle highs over the past two months, currentThis article was written byDean Popplewell4.05K FollowersFollowDean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.Quick InsightsWhat is the near-term technical outlook for the Dollar Index (DXY)?DXY has turned bearish short-term, breaking below its pivot area, with momentum suggesting a continued fall toward the 98.00 support zone.Which upcoming macro data points are most critical for DXY direction?November NFP on December 16 and CPI on December 18 are pivotal, as future inflation prints now carry heightened market impact post-Fed decision.What technical levels should investors monitor for DXY positioning?Key levels include 98.00 as primary support, 98.25 as lower channel bound, and 100.00–100.50 as main resistance; reactions at these points will guide tactical positioning.Recommended For You