2 things happened as our forecast last week:
1) The dollar broke new low and reach the 17-month demand zone around 95
2) The dollar pulled back into the supply zone sitting above 97.
But what was unexpected was the consecutive gain up to 4 days which caused the dollar to recover more than 75% of the previous bearish trend.
It seems that the outbreak of the coronavirus has continued to cause more fear and drove demand for safe-haven assets such as the dollar again.
Nevertheless, the dollar is about to face strong resistance from 99 onwards.
The Fed is also expected to cut rate by another 0.25%-0.5% in the coming Fed Fund rate decision.
Not until the dollar breaks 100, we will keep a bearish stance and look for opportunities to sell the dollar again.
1) The dollar broke new low and reach the 17-month demand zone around 95
2) The dollar pulled back into the supply zone sitting above 97.
But what was unexpected was the consecutive gain up to 4 days which caused the dollar to recover more than 75% of the previous bearish trend.
It seems that the outbreak of the coronavirus has continued to cause more fear and drove demand for safe-haven assets such as the dollar again.
Nevertheless, the dollar is about to face strong resistance from 99 onwards.
The Fed is also expected to cut rate by another 0.25%-0.5% in the coming Fed Fund rate decision.
Not until the dollar breaks 100, we will keep a bearish stance and look for opportunities to sell the dollar again.
