The dollar hit session low (92.09) in early US trading on Monday, after brief recovery attempt stalled at 92.47. New 28-month low (92.09, posted on 18 Aug) was retested but holds for now. Friday’s 0.85% fall and today’s fresh extension lower signal an end of 92.09/93.46 corrective phase. Last week’s Fed’s announcement of changes in accommodative policy, which will allow the central bank to keep ultra-low interest rates for prolonged period even if inflation moves above the target, increased pressure on the greenback. The dollar index is about to close the fourth consecutive month firmly in red (down 7% since beginning of May) and eyes strong supports at 91.83/64 (Fibo 76.4% of 88.14/103.80 ascend/rising 100MMA). Violation of these levels would open psychological 90.00 support and expose 2018 low at 88.14. Bearish technical studies on larger timeframes support scenario, but oversold conditions may slow bears.
Res: 92.50; 92.77; 92.98; 93.46
Sup: 92.09; 91.83; 91.64; 91.00
