The strong two-hour surge on Wednesday morning was followed by a period of consolidation slightly below the weekly R1. This lack of direction was also maintained during this Asian session.
In general, the US Dollar managed to move away from the bottom boundary of the seven-week channel up. The pair’s consolidation allows to think that the rate might be ready for a minor correction south today. However, this fall should not be significant, as the 109.20 area is supported by the 55-, 100– and 200-hour SMAs and the 50.0% Fibo retracement. It is unlikely that bears manage to breach this strong support cluster, thus leaving the rate near 110.00 early on Friday.
In case the bullish sentiment prevails, the pair is to target the weekly R2 at 110.60.
