Following two consecutive sessions of decline, the US Dollar entered a period of consolidation on Friday.
Given that technical indicators are already showing signs of recovery, it is likely that the pair eventually manages to accelerate from the newly-formed 2017/2018 low of 104.67 and approach a trend-line located near 105.80. This yearly low is likewise reinforced by the monthly S1. In order to fulfil the aforementioned scenario, the pair still needs to overcome the 55-hour SMA.
Despite technical signals pointing to soon appreciation, the weakness of the US Dollar which could be driven by such global political developments as US tariffs on Chinese imports are likely to push the rate even lower past the bottom boundary of a long-term channel and towards the weekly S1 at 104.50 and 104.05, respectively.
