Dollar Index Outlook: Fresh weakness retests key support at 96.48
|The dollar index stands at the back foot in early Friday and attacks again key support at 96.48 (200DMA / Fibo 38.2% of 95.35/97.18 upleg).
Thursday’s advance after stronger than expected US inflation data lowered expectations for 0.5% rate cut (that was initially boosted by comments from Fed’s chief Powell) was short-lived and fresh selling started in Asia.
Renewed weakness after Thursday’s long-tailed Doji signals continuation of pullback from 97.18 high (9 July), but bears must break 96.48 pivot to spark fresh acceleration lower and expose targets at 96.26/05 (Fibo 50% and 61.8% respectively).
Technical studies are in mixed mode on daily chart and lack clearer direction signal, as momentum remains strong, but MA’s are in mixed setup and RSI / Stochastic are negative.
Repeated failure to break lower could keep the price in extended consolidation, with initial bullish signal expected on lift above 100DMA (96.79).
Res: 96.59; 96.79; 96.96; 97.18
Sup: 96.48; 96.36; 96.26; 96.05
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.