After testing the upper boundary of a long-term channel for a couple of weeks, the US Dollar picked up significant force late in April, dashed through its upper boundary and the 55-, 100– and 200-period SMAs and skyrocketed up to the monthly R2 situated near the 3.62 level.
This strong upside momentum has been constrained in a narrow ascending channel. It is apparent from the pair’s movement this week that the given bullish strength has started to allay, thus pointing to a possible southern breakout from the junior channel. Technical indicators on the 4H and 1D time-frames likewise confirm this scenario, demonstrating that the expected decline might actually prevail for several weeks.
The nearest support of significance is the weekly PP, the 23.60% Fibonacci retracement and the 55-period SMA at 3.54, while the Greenback might still target the 200-period SMA currently located near the 3.44 area in the medium term.