The dollar remains under heavy pressure ahead of Fed
The pair extends steep fall into third consecutive day (so far down 2.1% since Monday’s opening) as traders sell dollar ahead of Fed policy decision.
Today’s weakness broke strong supports at 107.52/46 (30DMA / Fibo 61.8% of 105.98/109.85), with close below these levels to further weaken near-term structure and risk probe through 105.89 (Fibo 76.4%), the last significant obstacle on the way towards key near-term support at 105.98 (7 May low).
Daily studies turned to full bearish mode and add to negative outlook.
Broken 20DMA (107.88) which caps today’s action, marks solid resistance and guards upper pivot at 108.42 (200DMA).
Res: 107.52; 107.88; 108.26; 108.42
Sup: 107.16; 106.89; 106.51; 105.98