The dollar index consolidates after Friday’s almost 0.5% drop, sparked by downbeat US nonfarm payrolls data which cooled expectations for Fed rate hike and deflated the greenback.
Traders shift their focus on US July inflation report (due on Wednesday) to get more details about the central bank’s monetary policy trajectory.
Economists expect inflation to ease in July (mainly reflecting impact from the latest US-Iran ceasefire), with softer readings to add pressure on the US currency.
Near-term price action moves around key supports at 99.50 zone (50% retracement of 97.44/101.55 / daily cloud base / bull-trendline) which so far contained several attacks
Predominantly bearish daily studies (strong negative momentum / multiple MA bear-crosses) contribute to persisting downside pressure.
Firm break of pivots at 99.50 zone (and recent spikes at 99.25) would signal bearish continuation and expose next strong supports at 99.00 (200DMA / Fibo 61.8%.
At the upside, 99.90/100.00 zone (recent congestion ceiling, reinforced by falling 10DMA / psychological) mark significant barriers, violation of which to sideline bears.
Res: 99.90; 100.00; 100.25; 100.40
Sup: 99.50; 99.25; 99.00; 98.67
