Dollar regains traction and looks for retest of 110 barrier


The dollar edged higher on Wednesday following a triple downside rejection at daily Tenkan-sen (109.37) that limits negative impact from last Friday’s bull-trap above 110 mark.
The dollar firmed on rising optimism that US jobs data will come better than expected in May, while the US economic recovery, vaccination and inflation are well ahead of Japan’s figures that adds to positive signals for the greenback.
Daily studies show moving averages in bullish setup and fresh positive momentum that underpins the action, which eyes again 110 barrier.
Firm break of 110.00/14 (psychological / cracked Fibo 76.4% of 110.96/107.47) is needed to neutralize downside risk and signal continuation of rally from 107.47 (Apr 23 low) for final push towards 110.96 (2021 high, posted on Mar 31).

Res: 109.88; 110.00; 110.19; 110.55
Sup: 109.37; 109.26; 109.15; 109.01