After trading at its March high of 107.50 early on Friday, downside risks took over the market and pushed the pair down to the support of the 100-hour SMA, the 23.60% Fibo retracement and the weekly PP.
The pair remained near this level on Monday morning as well, thus being stranded between the 55– and 100-hour SMAs during the Asian session. Technical indicators suggest that the rate is more likely to push higher in this session towards the upper boundary of a three-week channel. This line, however, is unlikely to be reached today. In case of a strong bullish sentiment, the US Dollar could test the weekly R1 and the 38.20% Fibo at 108.00.
Meanwhile, the downside target for today is the 200-hour SMA and a breached channel line at 106.00 which might be used to form a retracement.
