I was expecting that USD will see more up moves in spite of being in over-sold zone. During past few weeks I was talking about covering short positions if USD breaks 81, looks like it was a good call.
Now if we consider its past trend then it can get a minor resistance at 84 and the major resistance is at 86 level. USD is now in more over-bought zone and if it reverses its position then it will get initial good support at 81.50 (31.8% Fibonacci retracement level is at 81.65) and then the stronger one is at 80.50 (61.80% Fibonacci retracement level from its 1st May low) level. here I must say that its Though I gave those support levels and looks like that USD is facing some kind of resistance below 83.50 level but still I think that USD may not see much corrections and it can test more up levels may be in later period of the coming week if not earlier.
The pattern which I mentioned in past can take it closer to 88–89 level but as I said that it may not go in a straight way. The way it moves this week it may change many calculations. Except the technical over-bought condition I don’t see much reason for USD to face corrections in spite of the fact that it faced up moves virtually throughout the last month. In technical word USD will not react with that pattern if it drops below 72.696 but that is beyond our imagination for now.
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