The US Dollar has been bound in several long and short-term patterns which have guided the price lower since October 2017.
The currency pair is likely to continue falling within the following trading sessions in line with the medium-term pattern. The pair is currently trading near the border of the junior channel and could breach the upper boundary in the short term.
If and when this situation happens, the rate would encounter a resistance cluster set by the combination of the 200-hour simple moving average and the weekly R1 near 0.9428. Traders should look for opportunities to trade either direction if the aforementioned scenario occurs.
The exchange rate has been trading in a large-scale triangle after it hit the upper boundary on November 30, 2017. Also, the currency pair has formed a new junior pattern during this period.
A support cluster set by the combination of the 55-, and 200—hour SMAs and the weekly pivot point at 1.6839 was providing enough support to push the price north. However, the surge could be stopped by the weekly R1 at 1.6945 near the border of the junior pattern.
