Dollar Index at critical level showing signs of a bounce

Dollar Index is currently trading at 107.20(up 0.19%) on Wednesday & showing signs of a bounce back from a critical level of 106.50 where in the month of September the breakout happened. The Federal Reserve will publish the minutes of the January policy meeting later tonight. According to the CME FedWatch Tool, markets see virtually no chance of a rate cut in March. This publication is unlikely to influence the market pricing of the Fed rate outlook in a significant way. Hence, the risk perception could continue to drive the US Dollar's valuation.

Technically after making a H&S pattern on daily chart, Dollar found the support around 106.50 Levels. However its still trading below 8 & 20SMA on its Daily Chart. On upside 107.40 is a crucial resistance for Dollar following 107.70. On the downside if Dollar Index starts to trade 106.85 then it can test 106.50 & 106 levels in coming days.