It’s been a rough day for the US Dollar so far. This is just the daily trend that was set earlier in the morning. The “good news” for the greenback is that we might have reached the peak in the bearish momentum today.
In the EURUSD chart below, we can see that the price is now near the top of the average daily range (red line), which stands right at the key 1.1278 resistance zone.
This is where we can expect the sellers to step in with a defined risk above the resistance to position for a drop into the 1.10 handle. The buyers, on the other hand, will look for a break higher to start targeting new highs, but from a risk management perspective, entering at the highs would be pretty bad.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
