Overnight’s price action fluctuated in between losses and gains and eventually staged a rally from the intraday low of US$0.5697 to a high of US$0.5893 just after the New York’s close.
The recent bullish course for US Dollar staged a reversal and plummeted from the near 3-year highs of 103.75 after the U.S. Federal Reserve unleashed its own set of new and extensive measures to help keep corporate credit flows and other critical parts of financial markets functioning smoothly.
The U.S. Fed said it would purchase Treasuries and mortgage-backed securities “in the amounts needed to support smooth market functioning,” showing the central bank is willing to go far beyond the $700 billion in new purchases announced last week.
From the technical assessment, with the upside target reached earlier last week around US$0.5950-65 should now be a potential marker for the bears to defend.
Due to the high volatility, and the continuous ‘whip-saw’ price action, renewed upside attempts are expected to fail towards the resistance located at US$0.5950 to US$0.6000.
With last week’s post ‘near’ 18-year lows at US$0.5500-10, overall, it is assessed the market bears will remain focused on this level as beneath here exposes the region of US$0.5375-85.
The immediate support is located at US$0.5835, then, US$0.5770.