US Dollar Index Price Forecast: 101.80 remains key support zone ahead of FOMC minutes

The US Dollar Index (DXY) remains at 102.10, with a bullish near-term bias as it holds above the 20-day exponential moving average (EMA) of 101.04. Technical indicators suggest that the recent advance is supported by trend dynamics, but the Relative Strength Index (14) indicates that upside momentum is strong but becoming increasingly stretched.

Immediate support is seen at 101.80, followed by the 20-day EMA at 101.04, where buyers are expected to defend the broader uptrend if the price retraces. The FOMC minutes, released three weeks after the Federal Open Market Committee's (FOMC) policy decision, provide crucial clues about the Federal Reserve's (Fed) future monetary policy outlook.

Currently, there is no urgency for another interest rate hike, but Fed board members have maintained a hawkish stance on the outlook. Investors closely watch the FOMC minutes for hints about the Fed's stance, as the market reaction to these publications can be delayed due to the time it takes for news outlets to access the material.