US Dollar Price Analysis: Bears pressure after key structure break
|- US Dollar bulls are pressured below key trendline resistance.
- The bears broke the horizontal structure that leaves the downside vulnerable for the day ahead.
The US Dollar dollar fell on Tuesday, reversing earlier moves, as the market perceived comments by the Federal Reserve chair to be dovish. Despite hawkish rhetoric from Powell at the Economic Club of Washington as he reiterated getting inflation back to the Fed's 2% target will take time, the US Dollar was let go of due to prospects of inflation coming down this year.
This leaves the outlook for the greenback bearish, both from a fundamental and technical outlook as the market digests the Federal Reserve and nonfarm, Payrolls data that was released on Friday:
US Dollar H1 chart
As illustrated, the price is leaning into a bullish trendline support but is now on the backside of the prior micro trend line which would now be expected to act as a counter-trendline. The break of the structure near 103.40 leaves the downside vulnerable with eyes on 103.00 for a break below to open the low-hanging fruit towards a test of 102 the figure.
This all leaves scope for currencies such as the Euro in particular to rally further this week:
The Euro is currently up against major trendline resistance but a break thereof for the day ahead will pout the bullish bias back in vouge.
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