As apparent on the chart, the US Dollar respected the dashed trend-line and the monthly R1 at 111.00 yesterday. This allowed bears to take the dominant hand in the market and consequently breach the 55-, 100– and 200-hour SMAs and the 61.80% Fibonacci retracement near 110.20. The remaining part of the session was spent trading sideways.
There is still some downside potential until the senior channel line that could be realised during the following hours. However, considering that the 100– and 200-period (4H) SMAs are located at 109.95, this channel line might actually be reached only in the evening with the pair trading sideways.
In terms of resistance, this session should not mark big fundamental leaps; thus, the strong 110.20 area is unlikely to be breached.
