Momentum Begets Momentum
At this point in time, it’s worth noting that the momentum in the market is very strong, and that typically means that you will get even more momentum going forward. In general, this is generally how these markets work, as buyers start to jump in and take advantage of the momentum overall. The 0.88 level underneath I believe will continue to be very important, and as long as we can stay above there, we can either ended up forming a bit of a bullish flag, or perhaps just simple sideways consolidation. However, if we were to break above the 0.89 level, then the market is likely to go racing toward the 0.90 level after that.If the market were to break down below the 0.88 level, we have the 200 Day EMA near the 0.8750 level that could offer quite a bit of support. After that, then you have the 0.87 level where the 50 Day EMA is racing toward. The 0.87 level is for me the “floor in the market” that we need to pay close attention to. It’s not until we break down below there that I would be worried about the overall recovery, and quite frankly, we are in a fairly low level historically, so I do think it is going to make quite a bit of sense that eventually the US dollar has to reassert its dominance as the world’s reserve currency.More By This Author:USD/CAD Forecast: US Dollar Looking For Buyers Against LoonieAUD/USD Forex Signal: Australian Dollar Bounces from Massive SupportAUD/USD Forecast: Australian Dollar Gives Up Early Gains On Friday
