Dollar Continues To Plunge Upto 1% Against Fiber & Pound
The dollar is continuing to fall against other currencies today, as we see the technical correction run deeper ahead of the weekend break. Yesterday, Fed chair Powell didn’t give a different message to Jackson Hole, while the ECB delivered on expectations and kept the door open for another 75 bps rate hike in October.
USD/JPY has dropped due to added pressure from Japanese officials, resulting in perky European bond yields. This doesn’t seem like the dollar rally can sustain itself though, as it’s failing to meet key technical levels.
The greenback has been on a steady decline against the euro and pound for the past few weeks now and it doesn’t seem to be slowing down. In order to get a better understanding of the situation, let’s take a look at the charts.
Let’s take a look at the charts to gauge the situation – the greenback is currently down 1% against both the euro and the pound.
EUR/USD is nearing a break-out point above its recent swing highs of 1.0075-90 as the high for the day reaches 1.0101. A successful break-out will see the near-term bullish momentum extend, with buyers seeing some relief towards 1.0200 and perhaps even the 100-day moving average at 1.0344 currently:
GBP/USD is currently seeing a strong bounce on the weekly chart, trading at the highs for the week after testing the March 2020 lows near 1.1400.
This could signal a potential technical bottom, with the near-term chart also turning around to show more bullish momentum if it breaks above its 100 and 200-hour moving averages:
