Resistance 3:$1.3770
Resistance 2: $1.3690
Resistance 1: $1.3530
Current price: $1.3258
Support 1: $1.3260
Support 2: $1.3120
Support 3: $1.3060
Comments:
The dollar advanced for a fifth day against the euro and reached near
an 18-month high against the common currency after Federal
Reserve Chairman Ben S.Bernanke called for further government stimulus
measures to avert a prolonged recession and the White House said it may
back such measures, having previously
withheld support for additions to a $168 billion package approved in
February.
This shows that U.S. officials are prepared to go far to limit damage to the economy. Sustained
break of $1.3260/65 ( 13 June 2007, 10 October 2008 lows) zone will
signal further losses. First downside target spotted at $1.3120 (161.8%
of $1.3685-$1.3340 move). Further down there is no decent support to
April 2007 low $1.3070/60.
Break above $1.3520/40 to target $1.3690/00 zone and may led to retest of October 9 high
$1.3780. The key upside Fibonacci target is
$1.3900/20 (Sept 11 low, neckline of head and shoulders reversal
pattern and 21-DMA at $1.3920). If pierced, the $1.3990
(38.2% of $1.4860 to $1.3444) and $1.4060 (23.6% of $1.6039 to
$1.3444) to be the next upside targets.