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FOMC sends US dollar packing, yet a bounce could be in sight
Yesterday’s Federal Open Market Committee minutes had a profoundly negative effect upon the US dollar, with the dollar basket breaking below the $96.92 support to create a new low. However, there are signs that we could have a recovery of sorts today, with the creation of a new intraday high.
This short-term bullish sentiment holds unless we break below the 27 July low of $96.52. Ultimately the $96.92 level is going to be crucial, with a possible test as new resistance.
Should we see a break back above $96.92 and $97.32, then it would look bullish again for the medium-term, but for now I am just looking for a short-term bounce and then will see how it responds to key resistance.