After reaching a new 2017/2018 low of 104.67 late on Friday, the US Dollar picked up momentum and had therefore shot up to 105.80 by Tuesday morning..
This rapid change in sentiment was due to investors re-gaining confidence in global markets and thus relocating their funds from safe-haven currencies, including the Japanese Yen. The Greenback dashed through the 55– and 100-hour SMAs and the weekly PP during the previous session and, at the time of this analysis, was testing the 200-hour moving average. This line is located near the weekly R1 and the prevailing trend-line circa 106.00.
It is likely that bulls do not have sufficient strength to overcame this resistance after yesterday’s surge, thus allowing for a minor decline today. A possible downside target is the 55-hour SMA at 105.00.
