Dollar falls to the lowest in nearly three months on fading Fed rate hike hopes / weak US data
|The dollar holds in red against the basket of major currencies for the fourth straight day, pressured by fading hopes of Fed changing monetary policy soon and accelerated lower on Tuesday after poor US housing data further soured the sentiment.
Fresh bears probe again through psychological 90.00 support and look for eventual close below this level, for the first time in over five months.
Completion of 89.93/90.59 correction signals a continuation of larger downtrend from 90.45 (2021 high, posted on March 31) through 89.66 (Feb 25 spike low) for test of 2021 low at 89.15 (Jan 6), violation of which would expose key longer-term supports at 88.25/14 (Fibo 50% of 201/2020 72.70/103.80 ascend).
Bearish daily and weekly studies add to dollar’s negative stance, which will be reinforced by close below 90 level.
Solid barriers lay at 90.16 (broken Fibo 76.4%) 90.37 (former low of Apr 29) and falling daily Tenkan-sen (90.50) which needs to limit extended upticks and keep bears intact.
Res: 90.00; 90.16; 90.37; 90.50
Sup: 89.65; 89.15; 88.93; 88.25
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