I was expecting that USD will not drop much in early days of this week; as such it bounced back before 80.5 level. It is good to see that it broke 81.70 level.
During this month USD goes up from level around 79, it reminds me September, 2011. But it does not mean that USD is going to drop from here. It is true that technically it is in over-bought zone but still it can go in the upside. If any minor corrections come then it will get initial resistance at 81.50 and then the stronger one is at 80.50 level.
In past few months (though I forget to mention it during last few weeks!) I told about a medium to long-term pattern of USD which it will triggers if it crosses 82 and this pattern can take USD near around 88–89 level. USD started to build this pattern in September, 2011. Now I am not sure about the exact timing when it will test that 88–89 level because it may take more time for it, but ultimately it will trigger that. So considering that pattern I don’t think that USD is going to drop much in coming days.
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