King dollar continues to dominate on Wednesday, hitting a new highest in two decades against the basket of major world currencies and 24-year high against yen, strongly underpinned by several factors.
Rising bets that the US central bank will keep aggressive stance in the policy meeting this month, safe-haven buying on growing global uncertainty inflate the greenback, while the most recent better-than-expected \US data showed solid conditions in the services sector, adding to the view that the economy is not in the recession but in a stronger slowdown.
Bullish technical picture on all larger timeframes, contribute to positive outlook.
Bulls eye target at 112.85 (Fibo 161.8% projection of the rally from 2021 low at 89.15 and May 2002 high at 115.34.
Broken psychological 110 support and rising 10DMA (109.31) should keep the downside protected.
Res: 111.00; 112.00; 112.85; 115.35.
Sup: 110.00; 109.31; 108.21; 107.43.
