Dollar remains pressured by vaccine hopes but surging virus cases limit losses
The dollar opened remains at the back foot against the basket of currencies and trading near recent lows at 92.17/10 (18/9 Nov), following Monday’s gap-lower opening.
Optimism about Covid-19 vaccine keeps the risk sentiment and deflates the greenback, but surging number of new virus cases and restrictive measures limit losses for now.
Bearish daily studies support the action but oversold conditions and strong headwinds that bears face from key 92 support zone (also near Fibo 38.2% of 72.69/103.80 rally / monthly cloud base), may delay bears for extended consolidation.
Falling 10DMA (92.54) marks initial resistance, which should ideally cap, with extended upticks to remain below descending 20DMA (92.92) to keep bears in play and offer better opportunities to re-enter bearish market.
Firm break of pivotal 92 support zone would expose psychological 90 support and risk extension towards 88.14 (Feb 2018 trough).
Conversely, sustained break above 20DMA would sideline bears, but lift above 93.17 (11 Nov lower top) is needed to signal reversal and double-bottom pattern formation.
Res: 92.26; 92.54; 92.92; 93.17
Sup: 92.10; 91.91; 91.71; 90.99