The beginning of the year brought a slowdown in the US Dollar Index, which defended important support in the area of 91.50 points. Support for USD may have been yesterday's comments from John Williams - head of the Fed branch in San Francisco, who said that US interest rates could rise three times this year. In addition, in his opinion, in favor of economic growth should affect the tax bill passed last year. On the other hand, Raphael Bostic spoke less optimistically about the growth rate of money. In the opinion of the new head of the Fed branch in Atlanta, monetary policy tightening should be continued this year, however at a slower pace than in 2017, provided further economic growth and inflation. In any case, the Fed's base scenario remains a gradual tightening of monetary policy.
Let's now take a look at the US Dollar Index technical picture at the H4 time frame after those comments from the FED officials had hit the markets. The comments helped bulls to lift the price up towards the key technical resistance at the level of 92.49 - 92.67 and now the market is testing this area. The momentum is pointing to the north, so bulls should seize the opportunity and try to break out above the resistance zone. In that situation, the next technical resistance is seen at the level of 93.04. The immediate support is seen at the level of 92.28.
