FXstreet.com (Barcelona) - The Dollar has continued its downt4rend from August 7 high at 97,75, as the pair reached a fresh 6-week low at 91.95, on its way to July's low at 91.73, as Nicole Elliott, senior technical Analyst at Mizuho Corporate Bank, affirms.
Elliott sees the Dollar capped by the 9 MA on the upside, and heading to a re-test of 91.73 or even lower: Dropping towards July's low at 91.73, the nine-day moving average limiting highs and putting the US dollar into oversold territory. A break below 91.50 should see implied at-the-money volatility increase significantly and increasing bearish momentum.
Concerning strategy, Elliott advices shorts targeting 92.00/91.75: Sell at 92.40, adding to 93.00; stop above 93.55. Short term target 92.00/91.75 with moves below here likely to becoming increasingly erratic.