U.S. Dollar Hit a Higher High, but Momentum Didn't Follow

The U.S. dollar is testing a breakout of a multi year downtrend, with last week its first weekly close above the trendline. Michael Boutros, FOREX.com Senior Market Analyst, breaks down the dollar across the weekly and daily charts ahead of the Federal Reserve decision. Boutros walks through the weekly bearish divergence forming on the DXY dollar index and what a first weekly close above the trend implies for the move. With the Federal Reserve rate decision pending, markets are pricing a real chance of a rate hike alongside roughly even odds of a hold. A communication averse Kevin Warsh and an FOMC July meeting with no updated projections leave traders parsing every word on inflation. 0:00 Dollar Tests a Breakout Top 0:52 Momentum Fails to Confirm 1:17 Dollar Meets Key Resistance 3:28 Fed Decision and Hike Odds 3:56 Warsh Keeps Markets Guessing Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_michael_boutros&utm_content=share Like and subscribe for more financial market insights. #StoneX #MichaelBoutros #Forex #FederalReserve