Dollar index ends week lower after Fed leaves rates unchanged

The US dollar finished the week mostly lower in the currency market after the Federal Reserve decided to leave rates unchanged. Greenback weakened after the FOCM meeting despite the fact that the US central bank signaled a potential rate hike before year-end.

“Fed officials noted the strengthened case for a rate hike but decided to wait for more data to confirm that notion. New language added in the statement suggests the committee is priming markets for a near-term move, which we expect will take place at the December meeting,” said analysts from Wells Fargo.

The US Dollar index, which gauges the US dollar against its main competitors, is about to end the week 0.62% lower and far from the highs. On Wednesday it peaked at 96.26, a 2-week high before turning to the downside. It bottomed on Thursday slightly below 95.00, but quickly rose back above. On Friday the index was unchanged, about to end the week hovering around 95.30/35.

US Dollar relevant levels

To the downside, support levels are seen at 95.20 (Sep 23 low), 94.90 (Sep 22 low) and 94.75 (trendline). On the opposite direction, resistance could be located at 95.45 (Sep 20 low / Sep 15 high), 96.00 (psychological / Sep 16 high) and 96.25 (Sep 21 high).