The US Dollar was pressured by bears on Wednesday which resulted in a breakout of the 55– and 100-hour SMAs early in the session. This fall was stopped by the combined support of the 23.60% Fibonacci line, the weekly PP and the 200-hour SMA circa 106.70. As apparent on the chart, this level has previously provided a significant resistance/support area. Thus, a downward-sloping triangle was confirmed.
By Thursday morning, the pair was squeezed in between the bounds of all these aforementioned levels. It is likely that traders are unable to breach them for some hours. Meanwhile, a breakout should determine the pair’s subsequent movement during the day.
Technical indicators favour more a northern breakout of the 107.00 area that should send the Greenback for the 107.20/50 area.
