© Dukascopy Bank SA
Considering that the currency pair at the same time respects two parallel positively-sloping trend-lines, 39.86 may not stay the all-time high for long. We can expect a correction from the current trading levels, but the sell-off should come to an end before or at the support at 38.71, which is created by the two-month up-trend and the monthly pivot point, and then give way for a recovery.
In the meantime, the upside is likely to be limited by the upper boundary of the bullish channel at 40.50. As for the sentiment, most of the traders (59%) are convinced that the U.S. Dollar has exceeded its true value and should retreat.
© Dukascopy Bank SA