Dollar index tumbles on fresh risk sentiment in pre-election uncertainty
The dollar index slumps on Tuesday (down almost 0.5% since opening in Asia), as American electorate heads to the polls and uncertainty rises, keeping safe assets supported.
In addition, fresh risk appetite lifted stocks, riskier currencies and commodities, increasing pressure to the greenback.
Fresh weakness completed bull-trap pattern daily chart and Monday’s shooting star added to bearish signals.
Bears surged through narrowing daily cloud (spanned between 93.99 and 93.50) which twists later this week and magnetic.
Close below key supports at 93.58/50 (Fibo 38.2% of 92.44/94.29 / daily cloud base) would further boost bears for extension towards a cluster of daily moving averages (10/20/55) at 92.37/32 zone.
South-heading momentum is approaching the border of negative territory and stochastic emerged from overbought zone, supporting the notion.
Markets await the results of election, with risk of further weakness of the greenback in case of blue wave scenario.(Biden wins the election and Democrats take control of Senate).
Res: 93.81; 93.99; 94.04; 94.21
Sup: 93.50; 93.32; 93.15; 93.02