Such a behavior in the market shows that the risk trends set the tone for investors rather than the signals from FOMC that turned out to be rather optimistic as the now expects two hikes instead of three next year, while markets have nearly prices out even a single hike, citing stress in global financial markets, heightened , slowing global growth, a plunge in the oil market and the lingering risks from the US-China trade war, despite the recent progress in talks.
In the short term charts, the oversold conditions warrant some corrective recovery or at least a consolidation. The next major driver for the pair is the US NFP employment report due tomorrow. Should the numbers disap-point, the dollar could extend the decline.
A break below the 111.70 support will open the way to the 111.35 area. Once below this level, the greenback will target September lows marginally above the 111.00 threshold.