The weekly S1 and the monthly PP at 109.45 provided strong support for the US Dollar during the first part of this week. The pair gained momentum mid-Tuesday and therefore breached the 55– and 100-hour SMAs. It returned back in the breached senior channel and remained trading in the 109.80/110.20 range until early today.
Technical indicators show mixed signals, mainly due to the considerable resistance level located near 110.20. The rate is expected to push higher in this session, however, the 100– and 55-period (4H) and the 200-hour SMAs and the weekly PP could ease the current bullish sentiment and lead the rate lower today.
If this area is breached, the Greenback should target the weekly R1 at 110.65. Conversely, a fall is unlikely to surpass the 109.45 mark.
