The greenback retreated after from yesterday's high of 96.58 as expected and as price is still trading well below the Ichimoku cloud area suggesting mild downside bias remains for fall to 95.40/50, however, as we still believe low has been formed at 94.88, the currency pair shall find support above 95.00/10 (where Toushin demand is reported) and then further consolidation would take place.
In view of this, we are still looking to sell dollar on recovery with stop placing above the Ichimoku cloud top (currently locating at 97.03) but as indicated above, one must take profit on such a move. If the greenback is able to rise through the Ichimoku cloud top, this would suggest the decline from 98.90 has ended at 94.88, however, only above resistance at 97.20 would confirm this and then stronger rebound to 97.36 (61.8% Fibonacci retracement of 98.90 to 94.88), then towards 97.90/00 would follow but strong resistance at 98.58 should cap upside
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