Following a strong period of decline during the previous sessions, the US Dollar managed to regain some of its lost positions on Monday. Gains, however, were largely limited due to the notable resistance of the 55– and 100-hour SMAs and the monthly S3 located nearby.
Technical indicators favour another fall towards the distant weekly S1 at 107.53 during this session. In case fundamentals fail provide strong upside momentum, this is the most probable scenario. By and large, the US Dollar should soon accelerate against the Yen and return near the 109.50 mark where the upper boundary of a six-week descending channel is located.
