To no surprise, the upbeat Fed stance from yesterday has contributed to the dollar strength this morning. In fact, the trade has restarted talks of a September rate hike and that thinking is largely due to residual proof of strength in the US job sector. Besides a good ADP reading Wednesday, the markets will be presented with four jobs related data points by Friday morning and the bias is for decent/positive readings and that would seem to set the stage for a near-term rise back above 95.00 and potentially a rise all the way back to the mid July highs of 9545.
While euro zone producer prices could have been mildly supportive of the euro this morning, significant fresh damage on the charts and residual bullish sentiment toward the dollar leaves the currency in a definitive downward motion. Resistance is at 11720 and 11750 with support at 11677.
US Dollar Sep ’18 Daily Chart