US DOLLAR INDEX – near-term action remains in red ahead of FOMC minutes
Pullback from $94.08 peak (06 Oct recovery high) extends in the fourth day and hit key support at $92.90 (Fibo 38.2% of $90.97/$94.08 correction / base of thick ascending 4-hr cloud).
Bears faced headwinds here and may pause recent acceleration lower as slow stochastic is entering oversold territory on daily chart.
Daily studies are bullishly aligned and favor reversal at this point, as a plethora of supports, consisting of 55; 20 and 30 SMA’s lay just below and underpins.
The dollar is awaiting FOMC minutes later today for fresh signals, with hawkish stance which would further boost expectations for rate hike in December, expected to inflate the greenback and sideline risk of deeper pullback.
Conversely, break below $92.90/50 support zone (which includes 55; 20; 30SMA’s and daily cloud base) would signal further downside and expose supports at $92.16/00 (Fibo 61.8% of $90.97/$94.08 / round-figure support.
Res: 93.17; 93.43; 93.82; 94.08
Sup: 92.79; 92.62; 92.52; 92.16