USD bearish outlook persists despite volatile Fed reaction

The US Dollar Index (DXY) remains under pressure at 100.45, down 0.3% despite an initial spike following yesterday's Fed decision. EUR/USD has climbed to 1.1120 (+0.4%), while GBP/USD holds steady at 1.3155. The Fed's mixed messaging - combining a 25bp rate cut with hawkish dot plot projections - created whipsaw price action overnight. However, the broader dollar downtrend remains intact as markets focus on the start of the easing cycle. EUR/GBP trades flat at 0.8450, suggesting balanced flows between European currencies. Technical indicators point to further dollar weakness, with DXY support at 100.20 and resistance at 100.80. The divergence between Fed actions and projections has increased market uncertainty, but traders appear to be favoring the dovish interpretation. Near-term dollar direction depends on upcoming US economic data, particularly Friday's PCE inflation figures.