Dollar accelerates lower on German CPI / US GDP miss
The dollar index lost ground on Thursday after German inflation report showed continuous easing in consumer prices, but March figure came above forecast, boosting expectations for more rate hikes and lifting the euro.
On the other hand, US economy grew below expectations in Q4 and tensions in banking sector continue to ease, adding pressure on greenback.
Fresh weakness pushed the price to one week low and pressure key support at 101.53 (Mar 23 spike low) loss of which would signal continuation of the bear-leg from 105.85 (2023 high, posted on Mar 8) and expose key short-term supports at 100.66 (2023 low of Feb 2).
Bearish setup of daily MA’s, strong negative momentum and thickening daily cloud after Wednesday’s twist, continue to provide pressure on price action.
Broken Fibo support at 101.88 (76.4% of 100.66/105.85) reverted to initial resistance, followed by falling 10DMA (102.50) which tracks the price action of past two weeks and expected to keep the upside protected.
Res: 101.88; 102.50; 102.64; 103.03
Sup: 101.53; 101.00; 100.66; 100.00