US Dollar bears move in and eye a break of trendline support

• The US Dollar is starting to slow down on the bid in the 101.30s DXY.
• Bears eye a bearish correction into W-formation.

The US Dollar has run higher in the midday session in New York, printing a high of 101.37 so far as per the DXY index. Meanwhile, the Federal Reserve hiked interest rates by 25 basis points last week but has taken out the need for future hikes from within the statement. This has been priced into the Fed funds futures that are now pricing for the fed funds rate to reach 4.993 in July, and remain below that all year. The Fed's target range stands at 5% to 5.25%, having risen rapidly from 0% since March 2022.

DXY technical analysis

As illustrated, the US Dollar has crawled out of the March bear trend and is now on the backside of that trend. Instead, the index is accumulating as illustrated above, penetrating the micro trendline resistance.

Zooming in, there is a W-formation and the current rally would be expected to decelerate and potentially lead to a correction, as per the hourly chart below.

On the 15-minute chart, the price is seen to be decelerating and the structure is located at 101.332. To confirm a downside bias, the bears will need to see a break of there, currently, until at least a new structure is formed, potentially, higher up.