The US Dollar rise above previous February’s 5-month peak 106.22 to 106.88 yesterday on usd’s renewed strength and intra-day break above there proposes up move from January’s 9-1/2-month bottom at 102.60 remains in progress and further gain to 107.20/30 would be seen after consolidation, however, loss of momentum would keep price below 107.40/50 and yield a correction later this week.
On the downside, only below 105.42 would indicate a temporary top has been made and risk stronger retracement to 104.90/93.
The pair opens today’s trading with bullish bias and attempts to surpass the bullish channel’s resistance, which supports the continuation of our bullish overview, which gets continuous support by the EMA50, while stochastic got rid of its negative momentum to provide the positive support to the price.
The next target is located at 107.65, while holding above 106.44 represents key condition to continue the expected rise.
On the news front, the US will release in the afternoon the ADP Non-Farm Employment Change and monthly Building Permits. A bit later the US ISM Services PMI and Final Services will be released.
The general expected trading range for today is between 106.20 support and 107.60 resistance and the expected trend for today is Bullish.
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