Dollar regains traction but more action higher needed to signal stronger correction
The dollar regained traction on Friday and cracks initial barriers at 93.16/22 zone (20DMA / Thursday’s high / Fibo 61.8% of 93.87/92.09).
The sentiment remains soured by Fed’s dovish stance and fresh increase in jobless claims that adds to gloomy US recovery outlook and prompts traders into haven greenback.
Fresh advance is on track to complete the second bullish engulfing this week, after bears found footstep at 92.09 (new 27-month low) that would add to recovery signals.
Rising daily momentum and north-heading stochastic and RSI, along with three long-tailed weekly candles in August, also contribute to recovery attempts.
The index is on track for the first bullish weekly close in eight weeks, hinting stronger corrective attempts, however, more work at the upside (lift above 93.90 lower platform and extension to 94.26 (Fibo 38.2% of 97.78/92.09 bear-leg) is needed to confirm and sideline larger bears.
Res: 93.43; 93.96; 94.26; 94.59
Sup: 92.89; 92.46; 92.09; 91.83