US Dollar retreats farther from Friday’s 1-1/2 year tops, weaker below 97.00 mark
• Fed rate hike uncertainty kept the USD bulls on the defensive at the start of a new trading week.
• Global growth concerns underpin safe-haven demand and might help limit deeper losses, for now.
The greenback, as measured by the US Dollar Index held on the defensive and extended previous session's late retracement from 1-1/2 year tops.
With investors looking past Friday's stronger than expected US monthly retail sales data, uncertainty over the Fed's rate hike path in 2019 turned out to be one of the key factors prompting some profit-taking at the start of a new trading week.
Recent comments by various Fed officials, including that from the Fed Chair Jerome Powell, have been interpreted as dovish and forced market participants to price in only one hike in 2019 as against the central bank's median view for three rate increases.
Meanwhile, fears over the outlook for global growth kept sentiment subdued continued underpinning the greenback's relative safe-haven status and might help limit deeper corrective slide ahead of this week's key event risk - the latest FOMC monetary policy update.
The US central bank, at the conclusion of a two-day meeting on Wednesday, is widely expected to hike rates for the fourth time this year. With the hike largely factored in, the Fed's new economic projections, especially the so-called dot-plot, will play an important role in driving the near-term sentiment surrounding the buck.
Technical levels to watch
Dollar Index Spot
Today Last Price: 97.26
Today Daily change: -21 pips
Today Daily change %: -0.215%
Today Daily Open: 97.47
Previous Daily SMA20: 96.95
Previous Daily SMA50: 96.53
Previous Daily SMA100: 95.85
Previous Daily SMA200: 94.25
Previous Daily High: 97.71
Previous Daily Low: 97.07
Previous Weekly High: 97.71
Previous Weekly Low: 96.36
Previous Monthly High: 97.7
Previous Monthly Low: 95.68
Previous Daily Fibonacci 38.2%: 97.47
Previous Daily Fibonacci 61.8%: 97.31
Previous Daily Pivot Point S1: 97.12
Previous Daily Pivot Point S2: 96.78
Previous Daily Pivot Point S3: 96.48
Previous Daily Pivot Point R1: 97.76
Previous Daily Pivot Point R2: 98.06
Previous Daily Pivot Point R3: 98.4