Dollar is set to extend weakness in August
Bears are pausing above new 26-month low on Friday, but dollar index remains in a free fall, as Fed’s pledge to continue to support the economy, hit by strong rise in new coronavirus infections, did little to reduce bears’ pace.
The dollar is about to complete the sixth straight week in red and heading towards the biggest monthly fall in a decade.
Negative studies on all larger timeframes and massive bearish monthly candle of July, weigh heavily, with additional negative signal being generated on this week’s break of key Fibo support at 94.12 (61.8% of 88.14/103.80, 2018/2020 rally.
Bears focus targets at 91.83 (Fibo 76.4%), 91.50 (100MMA) and 91.35 (monthly cloud base) break of which would unmask psychological 90.00 support.
Strong barriers at 93.82 (monthly cloud top) and 94.12 (broken Fibo 61.8%) are expected to cap extended upticks and keep larger bears intact.
Res: 92.50; 93.24; 93.82; 94.12
Sup: 92.50; 91.83; 91.50; 91.35