Dollar index hits one-month low on fresh risk sentiment
The dollar index falls to one-month low on Tuesday as fresh optimism over US stimulus talks boost risk appetite and increase pressure at the greenback.
Fresh weakness emerged after bulls got trapped above 20DMA last Thu/Fri and accelerated today, probing through previous low at 92.99 (9 Oct) and pressuring key support at 92.88 (base of thick daily cloud / Fibo 61.8% of 91.71/94.78 rally).
Bears look for firm break below 92.88 pivot that would generate strong signal for continuation of bear-leg from 94.78 high (paused for 92.99/93.90 correction), as the action would be additionally weighed by thick daily cloud and focus target at 92.44 (Fibo 76.4%).
Bearish daily techs are supportive however, bears are likely to face headwinds from this support and consolidate before final break lower.
Res: 93.25; 93.49; 93.61; 93.73
Sup: 92.88; 92.66; 92.44; 92.09