The dollar strengthened on Friday, helped by positive economic data, but was headed for its second week of declines, while commodity-linked currencies slipped as traders adjusted their positions after this week's sharp rise.
Better jobs and housing data and rising U.S. Treasury yields helped the dollar rise toward the end of yesterday's U.S. session, gains that it preserved in Asian hours.
The dollar index is sitting on the 93.70 level, up from the three-and-a-half week low of 93.50 it hit a day earlier.
The rally in commodity-linked currencies lost steam late Thursday and Friday in Asia as traders took profits.
The euro against the dollar is in a downtrend despite the rebound in recent sessions. The euro has failed to break through the former support which is now resistant at 1.1664. The negative bias is therefore still valid as long as prices are below this level.
A return of the EURUSD on breakout of yesterday's low towards a retest of the major support at 1.1525 is possible. On the flip side, a break of the 1.1664 but especially the bearish oblique would invalidate this bearish scenario and could lead to a rise towards the 200-period moving average.
(Chart Source: Tradingview 24.10.2021)
Support & Resistance Levels:
R3 1.1806
R2 1.1700
R1 1.1664
S1 1.1600
S2 1.1525
S3 1.1450
Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.