The dollar was sharply lower vs its major counterparts on Friday (down 0.8% since Asian opening), following Thursday’s bumpy ride after Powell announced new Fed’s measures, coming under increased pressure after markets digested news. New Fed’s approach to monetary policy opened prospect for keeping ultra-low interest rates for a longer period that deflated the greenback and prompted investors into riskier assets. Today’s fall confirms signal that short 92.09/93.46 corrective phase (capped by Fibo 23.6% of 97.78/92.09) is over, as bears retraced over 76.4% of the move and pressure 18 Aug low at 92.09 (28-month low). The index is on track for bearish weekly close and also to end the fourth consecutive month firmly in red, with the action being heavily weighed by massive July’s bearish monthly candle. Break of 92.09 pivot would signal bearish continuation and expose immediate supports at 91.83/64 (Fibo 76.4% of 88.14/103.80 / rising 100MMA), with psychological 0.90 support expected to come in focus.
Res: 92.61, 92.94, 93.08, 93.35
Sup: 92.25, 92.09, 91.83, 91.64
