FXstreet.com (Barcelona) - The Dollar has failed to break above 90.40 level on early European session, and the pair has plunged to 89.70 low, giving away all the ground taken on Thursday's rally.

At the moment, the pair trades right above 89.60/70 (Nov 10 and 12 lows) and in case of further declines, next support levels could be at 89.40 and 89.15/30 (Nov 2 and 11 lows). On the upside, resistance levels lie at 90.40 session high, and above here, 90.60 (Nov 12 high) and 90.85 (Nov 6 high).

The pair remains biased to the downside while resistance at 91.07 holds, says Karen Jones, technical analyst at Commerzbank: This leaves the short term risk on the downside and we would allow for a retest of the 78.6% Fibonacci retracement at 88.94. This is the break down point to the 88.23/00 recent low and the long term support line at 87.55, which is expected to hold the downside.

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