Slobodan Drvenica
Windsor Brokers
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
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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