Hello traders as we can see on weekly timeframe that DOLLAR is on strong support area around 88.600 to 89.000. Dollar has dropped a lot in 2020 major factor we all know was the pandemic. In 2021 as we know the vaccination to cure the virus is likely to speed up and most probably by the end of march we may see things speed up and it will lead to recovery of economies. Now considering technical aspect price already broke 50% fib level and is now in the middle of 61%. Around 88.700 it will test the strong support trend line of 2005 and 2008 which will lead the price to bounce off. Now what we should do?. Monitor the price on 4hr chart around the areas that we marked and when price is around our entry zone i.e 88.700 - 88.900 and momentum is shifting to bullish you can take a nice risk to reward trade. Once you notice the bullish run you can also consider other pairs as-well which could aggressively change their directions as well.
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