The bearish sentiment prevailed in the market on Friday. Despite breaching the 100-hour SMA, the US Dollar failed to move below this line, thus remaining in the 110.50/90 area by Monday morning. As apparent on the chart, the northern barrier is provided by the 200-, 100– and 55-hour SMAs and the weekly PP circa 110.80. It is unlikely that this strong resistance cluster is breached, thus pointing to a possible decline in this session. The daily low could be the monthly S2 and the weekly S1 near the 110.20 mark. By and large, political events in the United States are expected to be a strong driving force today, and it therefore could cause sudden fluctuations. However, the psychological 111.00 mark should still hold strong.
