The dollar is holding in a choppy range within daily cloud (spanned between 90.83 and 91.48) for the third consecutive day.
Larger bears from 93.45 (2021 high) are taking a breather above strong supports provided by 100DMA (91.00) and cloud base (90.83), before resuming the downtrend.
Daily moving averages are in bearish setup and negative momentum is rising that supports bearish scenario, along with Wednesday’s bearish candle with long upper shadow that points to strong upside rejection.
Bears need clear break below daily cloud to tighten grip for extension towards targets at 90.55 (Fibo 76.4% of 89.66/93.45) and 90.00 (psychological).
Daily cloud top (91.48) marks solid resistance, reinforced by converged 10/55DMA’s, which should keep the upside protected and maintain bearish bias.
Conversely, sustained break here would ease bearish pressure and generate initial basing signal.
The dollar’s action depends heavily on performance of the biggest components of the index: euro and Japanese yen, with focus on today’s key events: ECB policy meeting and US jobless claims, which would provide fresh direction signals.
Res: 91.30, 91.48, 91.58, 91.79.
Sup: 91.00, 90.83, 90.55, 90.00.
