Arabictrader.com - Analysts in the currency department at OCBC Bank, Francis Cheung and Christopher Wong, stated in a note issued on Wednesday that the US dollar has seen a notable decline ahead of the Federal Open Market Committee's decision.

The analysts pointed out that the dollar's decline came despite the release of stronger-than-expected US economic data; both retail sales and industrial production exceeded estimates, boosting expectations that the US GDP for the third quarter will show strong growth.

The Federal Reserve Bank of Atlanta also raised its forecast for annual GDP growth for the third quarter to 3.4% from the previous estimate of 3.1%, according to the "GDPNow" tool.

Although markets consider a rate cut during the US Federal Reserve meeting tonight to be almost certain, attention will particularly turn to the Dot Plot, which reveals the Federal Reserve members' expectations for the future path of interest rates, as well as the division in voting within the committee.

From a technical perspective, technical analysis of the US Dollar Index (DXY) indicates resistance at levels 97.40 and 98.10 (the 50-day moving average), while support levels are at 96.40 and 95.20 points.