The dollar plunged for a second week and the had the biggest dropped in a week in 4 years.
The acceleration of the slide was most definitely caused by an emergency rate cut by the Fed.
However, the US market labour posted strong employment numbers and a drop in the unemployment rate back to an all-time low.
The dollar has probably gone too far into an oversold zone and a pullback should be taking place due to demand from a 13-month low.
Nevertheless, the dollar might have turned technically bearish as it broke below the bottom of a 21-month rising channel.
This week, we expect the dollar to pull back towards a short-term supply zone just above 97.
However, should the price continues to fall, the next target will be the 17-month demand zone around 95.
The acceleration of the slide was most definitely caused by an emergency rate cut by the Fed.
However, the US market labour posted strong employment numbers and a drop in the unemployment rate back to an all-time low.
The dollar has probably gone too far into an oversold zone and a pullback should be taking place due to demand from a 13-month low.
Nevertheless, the dollar might have turned technically bearish as it broke below the bottom of a 21-month rising channel.
This week, we expect the dollar to pull back towards a short-term supply zone just above 97.
However, should the price continues to fall, the next target will be the 17-month demand zone around 95.
