The US dollar is trading higher this week as expectations for the Federal Reserve to tighten monetary policy continues to grow.
After stalling for the last couple of weeks, DXY is now eyeing new highs after breaking above its trendline resistance yesterday. The USD is also gaining relative to other major currencies, as USD/CAD notched its highest level for 2021 on Tuesday, while Wednesday saw NZD/USD sink to new yearly lows.
Whether or not the greenback can continue this strength will depend heavily on Wednesday’s FOMC announcement.
Check out this article by one of our senior analysts for a better understanding of key support/resistance levels: