Dollar remains vulnerable for two specific reasons
Sept 17 (Reuters) -The U.S. dollar is bearish as the Federal Reserve rate cut decision looms and the daily chart points to a bigger extension in the greenback to new 2024 lows.
The dollar traded near its lowest levels of the year on Tuesday, on the eve of the expected start to a U.S. easing cycle that markets are betting may begin with an outsized rate cut.
The LSEG Interest Rate Probability App shows the chance of a 50 basis point cut from the Fed is currently viewed as more likely than a 25 bp cut.
The USD index, which tracks the dollar against a basket of six major currencies, was last week capped by a major 101.926 Fibo, a 23.6% retrace of the 106.51-100.51 (April-August) drop. That upside failure has put the focus on the 2024 100.51 low and the 100 psychological level just below.
Fourteen-day momentum is on course to turn negative at Tuesday's close and if confirmed that would add to the overall bearish technical market structure.
For more click on FXBUZ
IRPR App: https://tmsnrt.rs/3ZtY2NW
Daily Chart: https://tmsnrt.rs/3XsjlN5
Daily Momentum Chart: https://tmsnrt.rs/3zneZig
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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