The dollar index falls on downbeat jobless claims and fresh risk appetite on US stimulus
The dollar fell against the basket of major currencies on Thursday after US jobless claims disappointed again, hitting the levels near historic high and Fed’s new stimulus, worth $2.3 trillion, boosted the risk appetite in the market.
The index was down 0.6% after the announcements and broke below psychological 100 level, extending the retracement of recent 98.33/101.01 upleg below 50% (99.67).
Bearish studies on 4-hr chart and weakening dailies add to negative near-term outlook.
Fresh bears need close below broken 10DMA (99.74) to remain intact for attack at next pivotal levels at 99.35 (Fibo 61.8% of 98.33/101.01) and 99.20 (daily Kijun-sen), loss of which would open way towards key 98.33 support (27 Mar low / top of thinning daily cloud which twists tomorrow and is also magnetic).
Res: 99.74; 100.00; 100.37; 100.81
Sup: 99.35; 99.20; 98.88; 98.33