FX Weekly (13 Nov ’16)
Anticipated support around 96.00 has held, with the USD Index bouncing sharply to test the 99.12 high of October.
A short-term corrective pullback is possible as overbought daily studies unwind, but congestion around 97.50 is expected to underpin any tests, as background studies continue to strengthen and investors maintain a buy-into-weakness strategy.
In the coming weeks, further gains are looked for, as the May rally gains fresh momentum, with focus to turn to the 99.63 high of February. Just beyond here is the 99.83 high of January, but psychological resistance at 100 is likely to provide a strong barrier, with initial tests to settle into consolidation.
An unexpected close below 97.50 will delay gains, and push prices back towards 96.00 as investors turn cautious once again.
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