The US Dollar continues to consolidate for the third consecutive session. During this time, a move above the 106.50 mark was restricted by the 200-hour SMA, while support was provided by a three-week up-trend.
The pair was testing the former at the time of this analysis. It is likely that the same lack of momentum also continues in this session, as traders are awaiting patiently the Fed policy statement released tomorrow at 1800GMT. Additional resistance is likewise provided by a medium trend-line near 106.50.
Given the rate’s inability to move above this mark for the last few sessions, it is more likely that that the US Dollar targets the 2017/2018 low and the weekly S1 at 105.30 today. A fall below this level should not occur.
