USDOLLAR Pulls Back To Support Area

The USDOLLAR has pulled back to the 38.2% Fibonacci retracement of the last impulse move up. This level coincides with a resistance turned support area (green shaded horizontal). The G7 finance ministers and central bankers will hold a teleconference today to discuss measures to deal with the economic impact of the coronavirus outbreak. The formal statement may create market volatility and it will be interesting to see if the support level holds. If the green 5-day EMA closes above the orange 10-day EMA and the RSI moves above 50, it will be regarded as bullish developments and may be a signal that the greenback has commenced its next advance. If this does happen, the catalyst is most likely to be market disappointment in the communicated monetary response i.e.a dovish stance by the Fed has already been priced in.