Weekly bias remains neutral. However over-all direction remains bearish. So a break and close below 1.4633 support will resume downtrend. The pair edged lower to 1.4633 but formed a short term bottom and recovered since then. Am expecting some more consolidations this week. Stronger recovery could be seen after dovish comments by the FOMC. But upside should be limited by 1.5551, 38.2% retracement of 1.7190 to 1.4634 at 1.5610, and bring down trend resumption. Below 1.4634 will extend the fall from 1.7190 towards 1.4229 support next.
This neutral bias was activated after dovish comments from the FOMC on Wednesday about hopes for hiking rates will be data dependent which will be based on the Labor sector, Inflation and Wage growth says Fed Chair Yellen. Even though 15 out of 17 officials speculate there would be a rate hike by September, Fed Chair Yellen said patience should be exercised.
Later this week investors would taking a close look at the USD CPI and Core CPI to determine the future of the greenback in regards to rate hike.