The Dollar lost some ground yesterday after the US decided to impose visa restrictions on Chinese officials over the treatment of Muslim minorities, which threatened to derail already delicate US-China trade negotiations and triggered a fresh wave of global risk-aversion trade, which benefited the anti-risk Yen. However, the greenback found some support after comments from the Fed Chair Jerome Powell suggested that interest rate cut in October was not a done deal. Heading into the key event risk, the Fed Chair’s yet another public appearance might influence expectations about the US central bank's policy outlook and produce some short-term trading opportunities.
The Dollar bulls found some resistance at the 107.20 level, which is also the 200-day moving average. If the bears hold that line, then price will likely pullback once again to retest yesterday’s lows 106.80. However, if the bulls gather the necessary momentum and push through 107.20, then a retest of 107.47 will be a plausible scenario.
Support: 107 / 106.80
Resistance: 107.20 / 107.47