Dollar Falls Further on BoE and ECB’s Hawkish Steer

Technical analysis of Forex market

The dollar index accelerated lower and hit the lowest in over two weeks on Thursday, following BoE and ECB’s policy meetings.

Near-term bears extend into fourth straight day, boosted by BoE’s hawkish hike and changed ECB’s narrative in central bank’s tiny shift towards tightening bias and dropping comments that 2022 hikes are unlikely, while narrowing divergence between the Fed and BoE and ECB on expected rate hikes, adds pressure on the US currency.

Weaker structure of daily studies (sharp loss of positive momentum / MA’s 10/20/30 turned to bearish setup) favors further weakness, as bears surged through 95.67 pivot (Fibo 61.8% of 94.59/97.42 upleg) and eye targets at 95.26 (Fibo 76.4%), 95.14 (100DMA) and 95.08 (daily cloud base)

Today’s close below broken 95.67 Fibo support to confirm bearish signal.

Res: 95.67; 95.85; 96.00; 96.25
Sup: 95.26; 95.14; 95.08; 94.59