The dollar fell to one-month low against the basket of major counterparts on Wednesday, as signs of progress in production of Covid-19 vaccine and rally in US equities, strongly boost risk sentiment.
Bears broke through the last obstacle at 96.18 (Fibo 76.4% of 95.68/97.78) and focus key near-term support at 95.68 (10 June low), break of which would signal completion of corrective phase and continuation of larger downtrend from 103.80 (2020 high, posted on 20 Mar) towards 2020 low at 94.59 (9 Mar).
Bearish daily techs add to negative signals, but oversold conditions warn that bears may face headwinds and consolidate before continuing.
Broken Fibo support at 96.18 reverted to solid resistance which should ideally cap and guard more significant barriers at 96.48/62 (broken Fibo 61.8%/falling 10DMA).
Res: 96.18, 96.48, 96.62, 96.73
Sup: 95.68, 95.19, 94.88, 94.59
