US DOLLAR firms ahead of release of FOMC minutes

The dollar firmed on Wednesday and neared recent multi-month peak, to fully reverse Tuesday’s drop and neutralize signals for potential correction.

Higher oil price and safe-haven demand gave fresh boost to the greenback, already supported by concerns about mounting fiscal problems in France that threaten to spill over the bloc and continue to deflate the single currency.

Markets await release of minutes of the latest FOMC meeting in September, when the US central bank raised interest rates, for more clues about Fed’s steps in coming months, after downbeat September NFP deflated expectations for October rate hike.

Daily studies maintain strong positive momentum and north-heading MAs have recently formed several bull-crosses that continue to support the action.

Weekly close above 101.94 (200WMA / monthly cloud base) to confirm bullish stance, with firm break of recent top (102.30) to generate initial signal of bullish continuation, while extension through important Fibo barrier at 102.67 (50% retracement of larger 110.00/95.35 downtrend) is needed to validate signal.

Solid supports at 101.40/50 (10DMA / Tuesday’s low) should hold dips.

Res: 102.30; 102.67; 103.00; 103.45
Sup: 101.98; 101.40; 100.95; 100.75