Fresh weakness retests key support at 96.48
The dollar index stands at the back foot in early Friday and attacks again key support at 96.48 (200DMA / Fibo 38.2% of 95.35/97.18 upleg).
Thursday’s advance after stronger than expected US inflation data lowered expectations for 0.5% rate cut (that was initially boosted by comments from Fed’s chief Powell) was short-lived and fresh selling started in Asia.
Renewed weakness after Thursday’s long-tailed Doji signals continuation of pullback from 97.18 high (9 July), but bears must break 96.48 pivot to spark fresh acceleration lower and expose targets at 96.26/05 (Fibo 50% and 61.8% respectively).
Technical studies are in mixed mode on daily chart and lack clearer direction signal, as momentum remains strong, but MA’s are in mixed setup and RSI / Stochastic are negative.
Repeated failure to break lower could keep the price in extended consolidation, with initial bullish signal expected on lift above 100DMA (96.79).
Res: 96.59; 96.79; 96.96; 97.18
Sup: 96.48; 96.36; 96.26; 96.05