• US Dollar bears are lurking below 101.50 while Fed Powell talks. 
• Fed's Powell´s comments will be scrutinized for a possible hawkish tone to flip the script. 

The US Dollar is volatile in the session surrounding the Federal Reserve. DXY, which is an index that measures the Greenback vs.. a basket of major currencies, was initially sold off but has since recovered the losses and is heading a touch higher. 

The Federal Reserve rate hike of 25 basis points and accompanying announcements within its statement. The central bank removed the prior language that signaled more hikes were coming. Instead, the statements say the extent to which more firming is needed hinges on the economy. Consequently, Fed futures are pricing in a pause in June and July and rate cuts in September.

Feds statement, key takeaways 

• Fed drops language that it anticipates more policy firming may be appropriate to attain a sufficiently restrictive stance.
• Will continue reducing the balance sheet as planned.
• Job gains have been robust and inflation remains elevated.
• Tighter credit conditions are likely to weigh on the economy, hiring, and inflation.
• Fed says the vote in favor of the policy was unanimous.
• Fed repeats us banking system is sound and resilient.
• In determining the extent to which additional policy firming may be appropriate, it will take into account tightening.

All in all, the Fed has opened the door to a rate-hike pause, and Gold price is reacting in kind. 

Markets will now await the Chairman, Jerome Powell who will be speaking in the press conference. 

Watch live: Fed Chair Jerome Powell

US Dollar technical analysis

The price is bearish while below 101.50.