Following a 40-pip plunge during the first half of Friday, the pair managed to recover some of its lost positions during the following hours. However, the strong resistance of the 55-hour SMA did not allow to surpass the 112.80 mark, thus leaving the rate lingering slightly above the monthly PP by Tuesday morning.
It is likely that the bullish sentiment prevails in this session which could push the US Dollar up to the weekly PP, the 100-hour SMA and the upper trend line breached on December 28 circa 113.00. Given that this area is likewise reinforced by the 55-day SMA, bulls could fail to overcome this psychological level.
In terms of downward pressure, the US Dollar is supported by the weekly S1 at 112.32.
