The US Dollar was guided by strong upside momentum on Tuesday. This movement began shortly after the pair hit the 200-hour SMA early in the session and was followed by a breakout of four resistance levels. By Wednesday morning, the Greenback was fluctuating near a down-trend.
It is apparent that the pair is moving steadily towards the medium-term channel and the 23.60% Fibo located at 106.80. Both lines have previously succeeded at reversing the rate near 107.00. This means that the current upward movement might still continue until this psychological level is reached.
In terms of support, the Greenback is unlikely to move below 55– and 100-hour SMAs at 106.35. Today’s fundamentals, however, could introduce some changes to this assumption.
