Driven by its broad-based weakness against a basket of currencies, including the Yen, the US Dollar continues to approach a four-month descending channel with its lower boundary located near the 110.00 mark. The pair’s attempt to edge higher on Friday was disrupted by the combined resistance of the monthly S1 and the 55-hour SMA circa 111.50. As a result, the Greenback fell even lower and thus had reached 110.60 by early today. It is likely that the bearish pressure continues to affect negatively the US Dollar. A possible fall, however, should not be massive due to a notable support cluster being located nearby circa 110.20. Meanwhile, it is unlikely that the 55-hour SMA is breached in this session, thus leaving the rate somewhere in the 110.50/111.00 area by Tuesday.
