Range Markets

After testing a significant resistance cluster formed by the monthly PP, the 100– and 200-hour SMAs circa 1.2750 mid-Friday, the bearish sentiment took the upper hand and guided the US Dollar lower.

The pair was fluctuating around the 55-hour SMA for the majority of session prior to reaching a two-week low of 1.2680 mid-Monday.

Indicators flash mixed signals in this session. Technical oscillators, however, are located either in the oversold area or near it, thus suggesting that a reversal might be due soon.

A possible point of reversal could be near 1.2680, as the weekly S1 at 1.2647 might prove to be a too distant target. In terms of resistance, the Greenback could maintain its fluctuations around the 55-hour SMA and thus remain located below the 100-hour SMA.

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