“The dollar's latest short term slide followed a headline coming from the US White House advisor, expressing concerns over dollar strength affecting economic growth.”
“Nevertheless, temporal bounces are seen as selling opportunities in the pair, already retreating from the high of the spike at 1.0780, now the immediate resistance.”
“Technically the 1 hour chart shows that the technical indicators are aiming to bounce from extreme oversold levels, albeit the pair develops well below a bearish 20 SMA.”
“In the 4 hours chart the technical indicators also head north, but remain in extreme oversold levels, as the RSI holds around 23.”
“Support levels: 1.0725 1.0690 1.0660”
“Resistance levels: 1.0780 1.0815 1.0850”
US stocks fall more than 1%
The Dow Jones Industrial Average dropped 219 points, or 1.2%, to 17,778. The S&P 500 index fell 23 points, or 1.1%, to 2,056, and the Nasdaq Composite lost 64 points, or 1.30%, to 4,878.
Strong US nonfarm payrolls published last Friday fueled prospects the Fed could raise interest rates sometime mid-year, boosting the greenback across the board and weighing on stocks and commodities.
The US dollar index reached an 11-year high of 98.50 while EUR/USD fell to its lowest level in 12 years at 1.0725 on Tuesday.
Meanwhile renewed concerns about Greece debt situation also depressed risk sentiment and stocks across the globe.
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