U.S. Dollar Continues To Rally, But Watch For Pullback
Mike Macdonald | May 31, 2016 12:07AM ET
Investor sentiment remains positive on the US dollar, with prices extending the bounce from the 91.91 low of 3 May to reach 95.78. There is risk in the coming days of a corrective pullback, as overbought daily studies unwind, but any break below the 94.94 low of 26 May should be limited in consolidation above 94.00, as weekly studies continue to improve and investors maintain a buy-into-weakness strategy.
Resistance is at congestion, around 96.00, with the 96.20 retracement and 96.40 high of 28 March thereafter. This area could promote reactions before a later break opens up the 94.06 high of 16 March.
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