The dollar index bounced on Wednesday, after 200DMA (103.52) repeatedly contained dips in recent sessions.
Reversal pattern is forming on daily chart and 14-d momentum is ascending from negative territory and pressuring the centreline, contributing to positive signals, which will still look for additional confirmation on daily close above cracked Fibo barriers at 104.00/02 (converged 10/20DMA’s / 50% retracement of 104.85/103.19 bear-leg).
However, firmer direction signals are expected to come from releases of inflation data from the US on Thursday, which will give more details about Fed’s plans to start cutting interest rates.
Near-term action is expected to keep bullish bias while holding above 103.80 zone (broken Fibo 38.2% / daily Tenkan-sen).
Res: 104.02; 104.22; 104.46; 104.85.
Sup: 103.80; 103.52; 103.19; 102.93.
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