Bulls are pausing on overbought conditions
The dollar index eases from new two-year high in early Wednesday, with the action seen as technical correction on overbought studies, as the greenback remains well supported by safe-haven buying on rising uncertainty over Ukraine crisis and expectations for more aggressive Fed in coming months.
The larger dollar’s uptrend accelerated strongly in past two months and is on track for over 2% advance in April, the biggest monthly gain since November 2016.
Rising positive momentum and MA’s in bullish setup on daily chart, point to strong underlying uptrend, while overbought conditions suggest bulls are taking a breather before resuming.
Solid supports lay at 100.34/20 (broken Fibo 76.4% of 103.80/89.15 / rising 10DMA) and psychological 100 level, where dips are expected to find ground and keep bulls intact.
Caution on extension below 99.54/45 (Apr 14 trough / 20DMA) that would signal deeper correction.
Res: 101.01; 101.50; 102.00; 102.26
Sup: 100.54; 100.34; 100.00; 99.54