Last week I was not sure that USD will reverse its moves in earlier days but since it was in over-sold zone, I repeatedly told that up move is due. It got the resistance exactly at 79.5 which I said.
Now USD is in short-term over-bought zone but still I think that it will go in the upside. If it breaks 79.5, then 80.5 will act as a good resistance for it. For this moment 82 is very far. In my past reviews I told that USD is following a wedge and looks like its break-out time is near, but still it may take more time. If it takes more time to break-out from this pattern then it will not like to break 80 level in coming days.
Though last day’s move indicates that it has more chance to go in the upside but in case if USD drops below 78.60 then it may test 78 and then triggers the bearish pattern. This negative pattern can take USD around 75 level. But I don’t think that we have to talk much about this for this moment, unless situation changes dramatically.
Thought I give certain specific levels for USD but I think it will not see the huge drops or big jumps in coming days, especially if I consider the events which are going on. I want to repeat which I said during last few weeks that 78–82 becomes an important zone for it. I think person who has created long positions, for them 77–77.5 is the important level and for short positions the level is 81.
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