Despite attempts to edge higher during the previous two trading sessions, the US Dollar failed to overcome the 200-hour SMA and thus entered a minor period of consolidation. This has resulted in the formation of a short-term ascending channel (drawn with dashed lines). The downside limit during this time has been provided by a seven-week channel up.
Early on Tuesday, the Greenback was restricted by the combined resistance of the 55-hour SMA and the 50.0% Fibonacci retracement at 109.15. If this level is surpassed, another strong barrier—the 100– and 200-hour SMAs—are limiting an advance above 109.40. In terms of support, the weekly S1 is located at 108.50.
Technical indicators are rather indecisive for this session, suggesting that the general direction of the pair could remain sideways in this session if no fundamentals disrupt this assumption.
