Following a dismal open to the trading week, March USD Index futures have bounced back. A two-day win streak has values in bullish territory as the weekend break approaches. Given the bearish action of Monday and Tuesday, those long the USD Index have to be happy that the situation has stabilized.

On the economic news front, central bankers are due to take center stage in the coming hours. Several FED members, as well as ECB President Mario Draghi, are scheduled to issue public comments. Aside from Draghi, forex players will be intently watching the FED’s Monetary Policy Report at 11:00 AM EST. The FED issues this report to the U.S. Congress twice per year, highlighting adopted policies and their outlook for the future.

March USD Index Futures

Tuesday was an epic day of trading for the March USD Index. Early positive sentiment quickly faded and price fell rapidly below the daily 38% Fibonacci retracement.

Here are two downside support levels to watch until the closing bell:

• Support(1): 38% Current Wave Retracement, 96.330
• Support(2): Bollinger MP, 96.245

Overview: With the ECB and FED active today, anything is possible for the USD Index. At press time (10:30 AM EST), the daily uptrend remains valid. As long as downside support holds firm, a bullish bias is warranted.

Anytime central bankers talk, currencies listen. Be on the lookout for enhanced volatility as events unfold throughout the session.