Rising risk sentiment drives the greenback towards Aug lows


The pair extends steep fall into second day, turning focus towards August lows at 105.20/10.
Rising risk sentiment was boosted by upbeat Chinese, German and US  data, sending the greenback sharply lower against yen.
The greenback remains the main currency for funding global risk mode, as Fed in its latest policy shift put more focus on inflation and employment, signaling that interest rate may stay at ultra-low levels for prolonged period of time, while the Bank of Japan, in its Thursday’s policy meeting is not expected to make any change to its policy.
This makes good environment for further dollar’s weakness as today’s action broke below and is on track for close below the base of daily cloud (105.65) which was cracked on Monday.
Bears pressure pivotal Fibo support at 105.28 (61.8% of 104.18/107.04), close below which would generate further negative signal and risk fresh acceleration lower.
Daily technical studies are in full bearish configuration and support the notion.

Res: 105.65; 105.79; 105.95; 106.05
Sup: 105.28; 105.10; 104.86; 104.68