During this month USD is making lower highs and lower lows, in an uptrend this type of moves may be giving a signal about more future up moves. I am still positive about that pattern of USD which can take it towards 89–90 levels in coming future. But for that it needs to crosses 83.50–84 level which it failed to do in last few weeks. There after considering its past movements, USD may face the major resistance at 86 level on its journey towards 89–90 level.
Last week though I told about a short-term bearish pattern, here it is important to look at 81.50 level. If USD drops below 81.50 level then there is a good chance that it will test 80.50 (which is its 61.80 retracement level considering 1st May low). In the downside 80.50 is an important support level for USD.
If USD drops below 80–80.50 then things may not be good for it. In this moment I can say that in technical language, USD will not react with that bullish pattern if it drops below 72.696 but that is beyond our imagination for now.
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