Dollar remains fragile on new virus cases; recovery hopes
The dollar came under renewed pressure on Monday after bears paused last Thu/Fri and fell to the lowest in nearly two weeks.
Today’s dip found footstep at important Fibo support at 96.48 (61.8% of 95.68/97.78), but near-term outlook remains negative as dollar is fragile on optimism over economic recovery, boosted by today’s stronger than expected growth in the US services sector and rising new coronavirus cases in the US.
Bearish daily studies favor further weakness (momentum broke into negative territory and MA’s turned to full bearish setup).
Break and close below 96.48 pivot would generate fresh bearish signal for test of 96.18 (Fibo 76.4% of 95.68/97.78), the last obstacle on the way to key support at 95.68 (10 June low).
Today’s close below 96.73 (broken 50% retracement) is needed to confirm bearish stance.
Only bounce and close above 20DMA (97.01) would sideline bears.
Res: 96.73; 97.01; 97.15; 97.26
Sup: 96.48; 96.30; 96.18; 95.68