(1,2925) The EUR/DOLL confirmed a strong closing above 1,2880, resistance of the inside day after making a test of its support area at 1,2745. Overall it formed a positive key day reversal suggesting further upside potential. We have now 1,2960 – 1,2735 the levels to follow in the coming hours. A daily closing above 1,2960 tonight will suggest further s/t strength supporting also the formation of a positive week reversal!! The indicators of the daily chart have turned positive since the closing last night supporting further strength and also those of the s/t ones are positive suggesting further upside potential. In the hourly hart we have however overbought conditions and potential negative reversals that could limit further strength. The move above 1,2880 confirmed however also a double bottom suggesting a potential target of 1,3020. We believe there is therefore more upside potential for the moment suggesting a 1,30 overshooting. Possible correction should find good support at 1,2892 where we find the 200 days line; the closing last night above this line and above the resistance line is another strong support to further strength suggesting a return even toward the 1,31 area!! We stay on the sideline!
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