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The US Dollar Index (DXY) is seen at 104.6 level on Tuesday with mild losses. Amid signals of robust growth and persistent inflation in the US, Federal Reserve<\/a> (Fed) officials continue to express caution about premature easing. The market’s focus is steadily shifting toward the forthcoming release of the Federal Open Markets Committee (FOMC) Minutes on Wednesday and mid-tier data on Thursday and Friday including S&P PMIs and Durable Goods Orders.<\/p>\n As long as the US economy continues its robust growth while enduring inflation, Fed officials will lean toward caution, which could limit the downside for the USD.<\/p>\n The indicators<\/a> on the daily chart reflect a state of equilibrium for the US Dollar Index<\/a>. The Relative Strength Index (RSI) remains flat, indicating no clear dominance between buying and selling momentum. However, It remains in negative territory, which could suggest an overall bearish bias, but not decidedly so. The Moving Average Convergence Divergence (MACD) shows flat red bars, hinting at bearish sentiment remaining steady.<\/p>\n Despite the increased selling pressure pushing the pair below the 20-day Simple Moving Average (SMA), it continues to stay above the 100 and 200-day SMAs. While the market appears to await direction, the ability of the Index to maintain above the 100 and 200-day SMAs shows persistent demand each time the DXY dips, highlighting a bigger bullish picture.<\/p>\n \u00a0<\/p>\nDaily digest market movers: DXY mildly down as markets await FOMC Minutes<\/h2>\n
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DXY technical analysis: DXY\u2019s balance between bulls and bears persists, while investors await direction<\/h2>\n