Dollar Moves Lower

Overall, the dollar index gained a few basis points during the overnight session, but the movement was slow as the market heads toward the BoE and the ECB interest rate decisions. In Wednesday trade, the major pairs managed to reach important price point levels, but the selloff seen during the late U.S. equity session forced the major pairs lower once again.

Over the last few days of trading, the market had a calendar that was loaded with important news reports, something that was reflected in the foreign exchange's momentum and trading volumes.

Dollar Index Technical View: TheLFB Member Charts.

Four-Hour Chart: Mixed. Main price points: 74.95, and 76.82. Looking for: Move higher

The dollar index is trading lower at the moment, after the 76.82 top that was established on Tuesday, at the start of the European session. The current move down could be the red wave c) of a black wave ii flat pattern with the recent bottom around the 75.50 area, and the Fibonacci support levels. The bull trend confirmation comes with the break of the 76.82 area.

The alternative wave count may also still be very important, which is showing a structure of a clear zig-zag correction labeled as circled A, B and C. If this one is the correct count then the 76.82 highs must hold, while the market trades toward the yearly lows.

The euro (Eur/Usd 1.4850) lost 40 pips during the Asian session, falling down to the neutral pivot point (1.4830). From there, the euro spent the rest of the overnight session moving up and down in a small range, but overall it failed to pull any important moves. On the daily chart, the euro is trading just below the 20-day moving average, which is in the 1.4860 area.