Sep 15 2022, 9:36 GMT
VOT Research Desk
ANALYTICS
In the European session on Thursday, the dollar maintained its stability and held above strong supports of 109.58/51 (broken Fibo 61.8% of 110.77/107.65 / 10DMA).
Due to signals of potential Bank of Japan intervention, Wednesday’s pullback from the peak of a robust gain following the US inflation report was severely rejected by markets once they recognized that action is currently improbable.
After August’s hotter than anticipated inflation, the dollar maintained its bullish momentum. This revived hopes that the Fed will continue its planned 0.75% rate hike, with some indications that it may be even more aggressive at the policy meeting the following week.
Along with daily technical indicators that have now fully returned to bullish setup and the action supported by Tuesday’s massive bullish daily candle, this provides new support for the US dollar.
Repeated closes above the 10 DMA and the broken Fibo level will reaffirm the bullish stance and keep the upside in focus with the next target at 110.03 (Fibo 76.4%) and the important barrier at 110.77.
(New 20-year high posted on Sep 15).
Res: 109.89; 110.03; 110.53; 110.77.
Sup: 109.51; 109.21; 109.09; 108.84.
