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DXY SEEING A POST FOMC REBOUND

ADMIN || 22nd September 2025

DXY has smartly recovered from the post FOMC lows of 96.3 to current levels of 97.75. We see it more as a temporary correction and not a change in the larger macro trend of lower DXY.

We see major technical resistances near 98.09 (50 DMA) and 98.47 (100 DMA). On the downside first support is 96.6. Broadly this week DXY range might be 96.6-98.10.

Euro has seen significant correction from 1.1919 (post FOMC high) to current 1.1730 levels. We expect to find support near the 50DMA at 1.1670. Considering there are PMI data due on Tuesday this week for Eurozone as well as German IFO data due on Wednesday both of which are expected to be strong, Euro should hold this support for the week.

JPY is currently trading at 148.06 post the recent DXY strength but the 200 DMA at 148.62 should hold for this week. Tokyo CPI data due on Friday this week should be strong and make the case for BOJ 25 bps rate hike in October. On the downside first support is at 100 DMA at 146.30.

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