BUZZ-COMMENT-Dollar is stuck as key factors look set to dominate

Dow Jones Industrial Average -0.31%
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- The U.S. dollar remains in a state of flux in a week where key fundamental and technical factors look set to dominate the U.S. currency.

Dollar is stuck in narrow ranges against its major peers, as traders await the Federal Reserve's monetary policy decision. The central bank is expected to leave rates unchanged on Wednesday and the focus will be on the accompanying statement and Chair Jerome Powell's press conference for any hints on future policy moves. Another key factor is U.S. jobs data due on Friday.

The 14-day momentum reading of the USD index, which tracks the dollar versus a basket of six other currencies, remains positive. However, the upside is so far limited by thick cloud supply that now spans the 102.505-104.265 region. The upside is also limited by the 103.975 Fibo, a 50% retrace of the 107.34 to 100.61 (October to December) drop. But a break and daily close above the 103.975 Fibo would shift the bias back to the upside.

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(Martin Miller is a Reuters market analyst. The views expressed are his own)

((martin.miller@thomsonreuters.com))

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