The dollar index accelerated lower on Thursday, extending steep pullback into fifth straight day.
Fresh weakness broke below key supports at 100.28/00 (Fibo 38.2% of 94.59/103.80 rally/psychological), generating strong reversal signal.
It seems that the uptrend with massive gains in past two weeks (the index rose 8.1%) might be over and bears start to regain control.
Downbeat US weekly jobless claims (rose to 3.28 million last week from previous week's 282K) signal that the US economy is hit badly by pandemic and this is just the top of the iceberg. Jobless data come after a massive stimulus package and added pressure to the greenback, with strong bearish signal expected on today's close below 100.28 Fibo support.
However, fears that dollar may start fresh acceleration higher after deep correction remain as Fed seems to be done with measures for now and the latest $2 trillion package might not be sufficient to cushion disastrous impact of corona virus pandemic.

Res: 103.16; 103.80; 105.00; 107.00
Sup: 99.83; 99.19; 98.94; 98.43


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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

AUD/USD keeps gains above 0.6100 on Australian Trade data

Having regained 0.6100 on a jump in the weekly Australian Consumer COnfidence data, AUD/USD consolidates the spike to 0.6120 after the country's Trade and Job Ads data failed to inspire the bulls. US dollar trades broadly flat amid a better market mood. RBA in focus.


USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.


Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI snaps three-day winning streak

WTI oil fell by over 8% on Monday, ending a three-day winning streak, which saw prices rise from $19.94 to $29.11. The black gold fell as Saudi Arabia and Russia's decision to delay an emergency meeting to discuss output cuts shifted focus back to oversupply concerns.

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more

Forex Majors