The dollar index remains in red for the third straight day and extend pullback from new multi-week high (104.83).
Fresh bears pressure pivotal supports at 103.84/80 (Fibo 38.2% of 102.26/104.83 / top of thick daily Ichimoku cloud), with more obstacles seen at 103.60/40 zone (converging 20/55/200DMA’s / 50% retracement).
Firm break of these supports would further weaken near term structure and risk deeper drop. Conversely, ability to hold above these levels would point to a healthy correction and keep near-term bias with bulls.
Daily studies are still in a predominantly bullish mode, however, south heading 14-d momentum warns of existing downside risk if the indicator breaks into negative territory.
Traders await the release of remaining reports from US labor sector (weekly jobless claims today and NFP on Friday) which will complete the picture of the condition in the sector in March and provide more evidence for the Fed, as bets for the first rate cut in June remain high.
On the other hand, the latest remarks from Fed Chair Powell partially cooled the expectations, as he reiterated the stance that policymakers will be guided by economic data.
Res: 104.01; 104.20; 104.57; 104.83.
Sup: 103.80; 103.50; 103.24; 103.00.
.){kind=link}