The first part of Monday’s trading session showed lack of volatility, as bulls were restricted by the 55-hour SMA.
A breakout did occur mid-session; however, the strong downside momentum which was caused primarily by US-China trade dispute pushed the American currency considerably lower down to the 105.65 mark. The pair was subsequently guided by the 200-hour SMA which halted any attempts to move below the 105.75 level.
Technical indicators still remains bearish in this session. In addition, the US Dollar could likewise be negatively affected by further escalation of the aforementioned dispute.
In general, the pair is currently located in between the 55-, 100– and 200-hour SMAs. The nearest support is a channel line near 105.50, while a strong fall would be limited solely by the 105.00 area.
