© Dukascopy Bank SA
However, the downward momentum needs to pass a serious test before it can continue pushing the price lower. The US Dollar is currently facing a formidable demand area near 116. Apart from being a falling support line, this is also a level of a neck-line of the double top pattern, meaning there is likely to be a strong sell-off in case it is breached. Meanwhile, in the short-term, there is a high probability of a rally up to 118, namely the upper trend-line of the channel and the Jan 15 high.
© Dukascopy Bank SA