The US Dollar managed to resume its strong upside momentum on Thursday and shot up 63 pips during the day. The pair surpassed the weekly R3 and the 50.0% Fibonacci retracement and was trading at the 109.50 at the time of this analysis.
Given that the pair breached the short-term ascending channel early in the session, the pair might go for a minor correction south. The nearest support is the 55-hour SMA and the weekly R3 at 109.00.
It is likely that the Greenback edges even lower and tests the upper boundary of the breached five-week ascending wedge and the monthly R2 at 108.70.
In general, the bearish sentiment could prevail in the remaining part of the week, thus giving bulls some time to recuperate and continue its upward momentum.
