Downward momentum is picking up; the risk of the US Dollar (USD) breaking below 7.2037 is increasing.

USD has the capacity to break below 7.2027

24-HOUR VIEW: “Our view for USD to decline yesterday was incorrect, as it rebounded, reaching a high of 7.2579. Despite the advance, there is no clear increase in momentum, and USD is unlikely to rise much further. Today, USD is more likely to trade in a range, probably between 7.2300 and 7.2600.”

1-3 WEEKS VIEW: “After USD fell sharply two days ago, we indicated yesterday that ‘short-term downward momentum is picking up, and the risk of USD breaking below 7.2037 is increasing.’ We also indicated that the risk of USD breaking clearly below 7.2037 will remain intact as long at 7.2600 (no change ‘strong resistance’ level) is not breached. While USD subsequently rebounded strongly (high of 7.2579), we will continue to hold the same view for now.”