DXY extends declines for the 4th straight session.
U.S. President Donald Trump said he disagreed with the Federal Reserve’s decision to raise interest rates.
Possibility that the Fed might slow down the pace of tightening in response to criticism from the White House weighing on the dollar.
Technical indicators are biased bearish. RSI and Stochs have rolled over from overbought levels.
We see -ve DMI crosover on +ve DMI and MACD is on verge of a bearish crossover on signal line.
Price has taken support at 21-EMA, decisive break below will see further weakness.
Scope then for test of 50-DMA at 94.94 ahead of 38.2% Fib at 93.65.
Support levels - 94.97 (50-DMA), 94.92 (23.6% Fib), 93.65 (38.2% Fib)
Resistance levels - 95.57 (21-EMA), 96.13 (5-DMA)
Stay short on upticks, SL: 95.75, target 95
U.S. President Donald Trump said he disagreed with the Federal Reserve’s decision to raise interest rates.
Possibility that the Fed might slow down the pace of tightening in response to criticism from the White House weighing on the dollar.
Technical indicators are biased bearish. RSI and Stochs have rolled over from overbought levels.
We see -ve DMI crosover on +ve DMI and MACD is on verge of a bearish crossover on signal line.
Price has taken support at 21-EMA, decisive break below will see further weakness.
Scope then for test of 50-DMA at 94.94 ahead of 38.2% Fib at 93.65.
Support levels - 94.97 (50-DMA), 94.92 (23.6% Fib), 93.65 (38.2% Fib)
Resistance levels - 95.57 (21-EMA), 96.13 (5-DMA)
Stay short on upticks, SL: 95.75, target 95
Comment:
DXY sees brief dip below 95. Tests 50-DMA, break below to see further weakness.
