The dollar fell to ten-week low after huge US payrolls miss on Friday sparked fresh risk aversion as job growth well below forecasts boosted expectations that Fed would keep its ultra-low rates for a longer period.

The greenback was down nearly 1% in past two days as fresh bearish acceleration after multiple upside rejection under thickening daily cloud cracked key support at 90.37 (Apr 29 former low), clear break of which further weaken the structure on completion of failure swing pattern on daily chart.

Bears eye pivots at 90.16/00 (Fibo 76.4% of 89.15/93.45 rally / psychological) and could extend towards  key points at 89.66/15 (Feb 25 spike low / 2021 low, posted on Jan 6, the lowest since Apr 2018).

Daily studies are in full bearish setup and support the action, as the index is on track for bearish weekly close that adds to negative signals.
Broken Fibo 61.8% of 89.15/93.45 (90.79) and falling 10 DMA (90.86) mark solid barriers which need to cap potential upticks and keep bears in play.

Res: 90.55; 90.79; 90.86; 91.02

Sup: 90.16; 90.00; 89.66; 89.15

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.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD loses 1.21 as the dollar extends its gains

EUR/USD has dipped below 1.21, some 70 pips down on the day as the dollar recovers alongside Treasury yields. US Consumer Sentiment beat estimates with 86.4 points. 


GBP/USD retreats amid UK GDP miss, reopening concerns

GBP/USD is hovering around 1.4150, down on the day. UK GDP missed with 2.3% in April and a four-week delay to Britain's reopening is speculated. The greenback is gaining some ground.


XAU/USD drops back below $1900, as US dollar rebounds ahead of data

Gold price has retraced below the $1900 mark once again, having tested Tuesday’s high near $1903. The latest leg down in gold price comes on the back of a tepid bounce staged by the US dollar, as the Treasury yields trim losses across the curve.

Gold News

Ethereum price prepares for a bullish weekend, targeting $3,000

Ethereum price seems prime to revisit $3,000. Although ETH faces resistance at $2,300, the upswing seems imminent. A downswing below $2,000 could invalidate the bullish thesis. 

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more