Technical Observations
Just as I stated on the previous week’s analysis, Usd declined in price but is currently approaching a key weekly short term support line 110.31. I’m still hesitant to short Usd despite the fact that the previous week’s candle is a perfect bearish pin bar, however, if the support line 110.31 can clearly be broken to the lower side, then this will give me the green light that the price could go even lower towards the lower supportive trend line, if this trend line is also broken to the lower side, then I expect even further decline towards 106.13. According to the weekly chart above, I can only recommend short positions towards the lower trend line.
Technical levels:
Resistance levels
R1: 112.35
R2: 112.86
R3: 113.8
Pivot
110.67
Support Levels
S1: 110.04
S2: 110.98
S3: 111.41
Trade Signal
Conservative traders should wait for a break below 110.31 to short Usd towards the lower trend line.
Origin: FreshForex
