The dollar attempts to resume recovery, ignoring last week’s double-Doji with long upper shadows
The dollar kept positive tone on Monday, following last week’s 0.7% advance.
Today’s action is holding so far firmly in green and signaling bullish continuation, offsetting two consecutive daily Doji candles with long upper shadows that were formed on Thu/Fri, which pointed to indecision and strong headwinds that recovery faces.
Near-term action remains biased higher and probes again through falling 30DMA (92.99) and looking for retest of initial Fibo barrier at 93.14 (23.6% of 97.78/91.71).
Break here would generate initial reversal signal and expose next targets at 93.46 and 93.96 (21 / 3 Aug highs respectively) which guard upper pivot at 94.03 (Fibo 38.2% of 97.78/91.71).
Bullish weekly candle (formed after 8 consecutive weeks in red) underpins recovery, with additional positive signals coming from reduced dollar net short positions.
Strong and unexpected drop in US unemployment, partially offsets signs of slowdown in US employment growth, keeping the greenback inflated in Monday’s holiday-thinned trading.
Res: 93.07; 93.22; 93.46; 93.96
Sup: 92.80; 92.67; 92.09; 91.83