After yesterday's rally made by the US Solar against a basket of 6 other major currencies, the USD index hit 80,83, which was followed by a bearish reaction later that day, during the American trading session. The decline came out as the reaction to the Fed's latest decisions.
In particular, the central bank decided to go on tapering QE3. This time, the program was cut by $10bn down to $35bn a month.
The key interest rate remained unchanged after the Fed's meeting. At this point, it is 0,25%. After the announcement, the USD index went down form the mentioned intraday high to finally reach 80,40. Earlier today, the US Dollar continued is downward move started yesterday. The downswing started at 80,45 and later broke below the 4-week low at 80,19.
Meanwhile, experts say that the market is waiting fro the US labor market to support the index. Today, the US Department of labor is going to reveal the weekly jobless claims report. The previous report indicated an increase in the amount of unemployed Americans up to 317 000. Still, this time, experts are more optimistic and expect the amount of jobless claims to decline down to 314 000.
Meanwhile, Masterforex-V Academy reports that the H1 chart of the US Dollar is under the bearish pressure. The bearish tendency has been underway since declining from 80.97. At this point there are 2 waves in the count: 80.97-80.45 + 80.45-80.83 (reaction). For now, the price is developing wave 3 starting from 80,83, which is already 138,2% of the Fibo grid built on top of the initial bearish move.
Resistance: 80.45, 80.72 + 80.83 + 80.88, 80.94.
Support: 80.22 + 80.18.
