USD pullback should increase risk:reward ratio
The USD is in a mark up phase. This is typically defined by a bullish EMA formation. I.e. the green 5-day EMA > the orange 13-day EMA > the black 34-day EMA. Moreover, the RSI(9) is above 50 and indicative of bullish momentum (blue rectangle). However, it is also approaching the 80 level, which is regarded as overbought.
As such, key support may potentially be at the confluence of factors including, the central pivot (P), 38% Fibonacci retracement support and price support (green rectangle). The stochastic still needs to retrace to an oversold level (green ellipse).
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