The US dollar sank as traders reassessed the Fed’s stance in light of cooling inflation. A sharp fall below the daily support at 0.9740 prompted more buyers to bail out. Then strong momentum below 0.9500 was a sign that the reversal has caught the bulls off-guard, causing a mass liquidation. August’s low of 0.9370 is the next support but buyers could be wary of catching a falling knife. A bearish breakout would pave the way for a slide towards 0.9300. The support-turned-resistance 0.9500 is the first hurdle when the dust settles.
