Anytime the U.S. Federal Reserve (FED) is due to address monetary policy, the currency markets typically become range-bound ahead of the event. Today has been no different, as shown by the March USD Index futures contract. The daily range is very tight and volumes have been limited. At the moment, traders are happy on the sidelines ahead of the FOMC Minutes.

March USD Index Futures: Technical Analysis

The Tuesday session was a tough one for the USD, as it was battered across the forex. Values fell extensively against the Euro and British pound, driving March USD Index futures south. However, the sell-off has momentarily ceased as the markets await word from the FOMC.

Here are the levels to watch for the rest of this news-filled session:

• Resistance(1): 2018 High, 97.195
• Support(1): 38% Current Wave, 96.330
• Support(2): Bollinger MP, 96.210

Overview: In a Live Market Update from Monday, I outlined a long position trade in the March USD Index. The recommendation turned out to be good for 20 ticks profit, but that was about it. Currently, this market is in heavy rotation around the 38% Current Wave Retracement (96.330).

As always, the FOMC Minutes are going to enhance participation and volatility across the forex. The USD Index will extend its range later this afternoon in response to the event. If you are holding open positions in the USD, be sure to have your stops down and leverage in check to manage risk!