FXstreet.com (Barcelona) - Dollar rejection from 87.20 high during Asian session has found support at 85.85 on European trade, and the pair has returned to levels right above 86.00, trading at 86.35 at the moment of writing.

The Dollar, however, is trading under strong bearish influence, according to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, who points out to 86.70 area: For the short side I would be paying attention to the much steeper 1 hourly downtrend channel which comes in at 86.70 and only a break and hourly close above 87.10 would negate this powerful short term downtrend.

Resistance levels, according to Rosentreich, lie at 86.7, 87.1 and 88.2. On the downside, support levels lie at 84.46, 83.6 and 81.85.