USD Index Holds Steady Post-FOMC as Bulls Defend Key Support

The US Dollar Index maintained its position near 106.50 following the Federal Reserve's latest FOMC meeting, with technical analysis showing bullish momentum intact. The Fed held rates steady at 5.25-5.50% as expected, while maintaining a cautious tone on future rate cuts amid persistent inflation concerns. Technical indicators on the Dow Jones suggest continued dollar strength, with key support established at 106.00 and resistance at 107.20. The simplified technical approach highlighted in the analysis focuses on clean price action without excessive indicators, revealing a bullish flag pattern formation. Major USD pairs showed mixed reactions, with EUR/USD trading near 1.0500 and GBP/USD hovering around 1.2700. Traders are now positioning for potential dollar strength continuation, particularly if upcoming US economic data supports the Fed's hawkish stance. The technical setup suggests bulls remain in control as long as the 106.00 support level holds.