July 29 (Reuters) - The U.S. dollar has dropped below major technical support this week as pressure built on the U.S. Federal Reserve to strike a dovish policy stance amid a surge in coronavirus cases .
In a fast-changing global pandemic, this was not the turn Federal Reserve officials hoped for in early June, when their forecasts showed guarded optimism for an early economic recovery and steady slow growth to follow .
The USD index, which tracks the dollar versus a basket of six currencies, has continued to spiral lower since March 24, when the U.S. began registering 10,000-plus COVID-19 cases . The index has broken under the 93.881 Fibonacci support, a 61.8% retracement of the 88.251 to 102.99 (2018-2020) rise.
A weekly close under 93.881 would will increase the odds of a bigger slump to the 91.729 Fibonacci level, a 76.4% retracement of the same 88.251 to 102.99 gain. Related
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Weekly Fibo Chart: https://tmsnrt.rs/2X7MQoZ
(Martin Miller is a Reuters market analyst. The views expressed are his own)
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