The dollar accelerated higher in early European trading, extending bounce from Asian low at 111.66.
Fresh advance hit new two-month high at 112.27 and pressuring Fibo barrier at 112.37 (76.4% retracement of 113.17/109.77.
Announcement that the US would put new tariffs on Chinese good revived risk appetite, increasing pressure on safe-haven yen, which fell across the board, in early Tuesday’s trading. However, risk of stall exists, as dollar stands at the back foot against other majors and studies also warn that fresh bulls could run out of steam.
Daily slow stochastic moves sideways in overbought territory, while momentum heads south after forming bear-cross.
Solid supports lay at 111.87/75 zone (broken Fibo 61.8%/former highs/rising 5SMA), ahead of rising 10SMA (111.50, loss of which would signal reversal. Bullish scenario needs clear break above 112.37 Fibo barrier to signal bullish continuation and unmask key resistance at 113.17 (19 July high).
Res: 112.27, 112.37, 112.62, 112.92
Sup: 111.87, 111.75, 111.50, 111.30
