The anticipated corrective pullback is developing, as momentum studies continue to weaken and the bullish Tension Indicator, not shown, unwinds.
The break of the 100.80, (38.2%) retracement of the Nov-Jan rally is opening up critical support within 99.43/85, but this area is expected to underpin immediate tests, as background studies continue to improve and investors maintain a buy-into-weakness strategy.
A break, however, would negate higher levels as investors subsequently move to a cautious stance.
Following a corrective setback, fresh USD gains are looked for, with a close above the 103.82 high of 3 January opening up historic congestion around 105.00 as the May 2016 rally extends.
The break of the 100.80, (38.2%) retracement of the Nov-Jan rally is opening up critical support within 99.43/85, but this area is expected to underpin immediate tests, as background studies continue to improve and investors maintain a buy-into-weakness strategy.
A break, however, would negate higher levels as investors subsequently move to a cautious stance.
Following a corrective setback, fresh USD gains are looked for, with a close above the 103.82 high of 3 January opening up historic congestion around 105.00 as the May 2016 rally extends.
