FXstreet.com (Barcelona) - The Dollar reached a fresh 7-month low on Wednesday, at 90.12, and following recovery attempt has been capped around 91.20 level before retuning beck below 91.00 again. The Dollar, according to Nicole Elliott is trending downwards, heading to test critical support levels at 87.00 and 85.00.
Elliott saw signs of instability on the pair, and advances further decline for the coming weeks: Strong signs of instability yesterday as we rally from this year's low at 90.12, ending with a 'doji' candle. Hopefully the 9-day moving average will once again limit the upside leading to a series of repeated downside tests of critical support between 87.00 and 85.00 over the coming weeks.
The short-term target lies at 90.20/00, says Elliott: Attempt small shorts at 91.10; stop well above 91.65. Short term target 90.20/90.00, then 89.00 and probably a sudden push to 87.10.