Despite better-than-expected US labor figures in June, the US dollar fell versus a basket of key currencies.
The larger uptrend remains intact, with the current dip seen as positioning for a new push higher, as the labor report has less impact than the main factor that recently lifted the greenback – the US Federal Reserve’s hawkish tone, which sent initial signals about earlier than expected policy tightening.
Overbought daily studies are also causing new weakness, with corrective dips ideally contained by the 92.00 support zone (10DMA / broken). Fibo descends at a rate of 61.8 percent of 93.45/89.50.
The action is also supported by a strong rally in June (the index rose 2.4 percent), which left a large bullish monthly candle, keeping bulls in play for a new attack at 93.45. (2021 high).
Bulls would be put on hold for a deeper correction if they fell below the pivotal 91.50 support zone (higher base reinforced by 200DMA).
92.75; 93.00; 93.45; 94.00; 92.75; 93.00; 93.45; 94.00; 92.75; 93.00;
92.25; 92.01; 91.67; 91.47; 92.25; 92.01; 91.67; 91.47; 92.01; 91.67;/n
