During Thursday’s trading session, the US Dollar was trading between the weekly PP and S1. The American currency succeeded at surpassing the former early in the morning, but was reserved back in the range after encountering the 200-hour SMA near the 113.50 mark. There is still some downside potential that may be realised in in the upcoming hours. The Dollar has formed a minor descending wedge against the Yen that could be breached soon. A breakout to the upside is the most likely scenario that may occur in this session in case the pair fails to move below the 113.00 mark. Nevertheless, an upside surge may be hindered or even stopped at the 200– or 100-hour SMAs, while gains should be capped at the monthly R1 circa 114.00.
