FXstreet.com (Barcelona) - The Dollar dipped to a fresh 9-month low during Asian session, at 1.0320, and has bounced up to reach levels at 1.0380 resistance area, which is being tested at the moment.
The current rebound is corrective in nature, according to Karen Jones, technical analyst at Commezbank, and the pair will resume downtrend afterwards: The market is likely to see 1-2 day corrective rebound ahead of further losses. Near term rallies will find prolific resistance above 1.0525/55 and while capped here, the market will remain directly offered intraday.
On the downside, Jones sees the Dollar targeting 1.0210 Fib retracement: Key resistance is the 1.0675/1.0717 band, the 55 day moving average, top of the channel and the recent range high. Target is 1.0210/Fibonacci retracement. We would expect this is hold the initial test - this is key support - it is regarded as the break down point to 1.0010/00 then the .9645/the 2008 low.