Dollar drops broadly today after some Fed officials toned down the talks of tapering the asset purchase program. In general, they believe it’s premature to even start the discussion of withdrawing stimulus.
USD/JPY’s break of 103.59 minor support suggests that it’s already rejected by falling channel resistance, after failing to sustain above 55 day EMA too. Daily MACD suggests that the down trend from 111.71 has been losing momentum for a while. But there is no end to it yet. Focus will now turn back to 102.58 support.
USD/CHF also dropped sharply after touching 0.8918 resistance. Focus is back on 0.8821 minor support. Break will also confirm rejection by the resistance and maintain near term bearishness, for extending the larger down trend through 0.8756 low.
