Fading haven demand deflates dollar across the board
The dollar index accelerated lower in early US trading on Monday, down 0.5% since opening in Asia, as the greenback’s haven appeal fades.
Renewed optimism about swift recovery, despite persisting fears of the second wave of coronavirus, boosted demand for riskier assets and deflated dollar.
Fresh weakness pressures pivotal supports at 96.92/89 (Fibo 38.2% of 95.68/97.68 / 10DMA), break of which would generate firmer signal that corrective phase from 95.68 to 97.68 might be over.
Profit-taking from rally in past two weeks contributes to fresh easing, also supported by rising bearish momentum and stochastic emerging from overbought territory on daily chart.
Close below 10DMA would add to negative signals and unmask next key support at 96.45 (Fibo 61.8% of 95.68/97.68 upleg).
Res: 97.21; 97.68; 97.83; 98.16
Sup: 96.89; 96.68; 96.45; 96.16