US Dollar Technical Update: Head and shoulder patter breakout at 94.80, heading towards 91.60

Rajesh Tatineni BSH Advisory

Head and shoulder patter breakout at 94.80, heading towards 91.60

USDollar currently trading at 94.45, trading below 50MA at 94.92 and downside support holding at 94.25 or 100MA followed by 93.75 or 200MA. Trend seems weak with all fundamentals squawking around where Daily chart showing Head and shoulder pattern breakout at 94.80 which should fall till 91.65 which is a potential target. Meanwhile few hurdles at 100 and 200MA a break can see a sharp fall to our expecting targets. In this context, one can plan for counter currencies like Eurusd can rise to 11800 and Gbpusd to 1.3300, Audusd to 0.7300. Every dip is a buying opportunity for these pairs. Overall selling in dollar and buying in cross currencies is advised for coming days.

Suggestion: SELL DOLLAR AT 94.50 FOR 91.65/91.50

Levels to watch:

Support: S1: 94.25 S2: 93.75 S3: 93.20

Resistance: R1: 94.90 R2: 95.50 R3: 96.30

Author

Rajesh Tatineni

BSH Advisory

Expert in commodity and forex markets, Rajesh Tatineni carries a wide experience and vast knowledge of various financial instruments. He's been involved in financial markets since 2010.

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