The U.S. dollar wobbled above major support levels on Thursday, as traders awaited a batch of U.S. economic data that could set the tone at central bank meetings later this month.
Investors have bet on the dollar falling as the world recovers from the COVID-19 pandemic, but they have lately grown nervous over whether a surprisingly strong U.S. economic rebound poses a threat to a key assumption that interest rates will stay low for a long time.
The mood has kept speculators from adding much to short positions in recent weeks and has put the brakes on what a month ago seemed like a relentless downtrend.
The larger short term bear trend pattern still has potential to 1.2164. Trade may try to correct / consolidate declines, but narrow congestion with rallies blunted below 1.2240 will bear flag. A close under 1.2168 could resume bear trending to reach under last week’s low 1.2132.
Resistance 2 1.2250
Resistance 1 1.2230
Support 1 1.2188
Support 2 1.2168