"The grind lower has continued overnight though the still tend to think that the downside here in the short-run is limited," comments the TD Securities Research Team. "Support intraday stands at a hair below 0.9950 (which converges with daily support – see below). Short-term resistance is 1.0005/10."
The underlying trend lower is not particularly strong but it is bearish and gathering momentum," continues TD's report. "We have been fighting this trend down for some time but we remain reluctant to believe that there is significant additional downside potential in this market from here."
"The February-April congestion zone between 0.98/1.00 should still provide support for the USD from a medium-term point of view," concluded the research team.