FXstreet.com (Barcelona) - Dollar recovery from 86.50 support level extended above 87.20 during European session, and the pair has been capped at 87.40 high, right below Tuesday's high at 88.55.

At the moment the pair remains above 87.20 (Nov 30 high), in case of further decline, next support levels lie at 86.60 and 86.15 (Dec 1 low). On the upside, resistance levels lie at 87.55 (Dec 1 high) and above here, 88.00 (Oct 7 low) and 88.65 (Nov 25 high).

According to Stoyan Mihaylov, technical analyst at Deltastock.com, the Dollar might reach as high as 88.00 before turning lower, heading towards 83.45: The consolidation above 84.79 is still on the run and there is a risk of a precise test around 88.01 resistance before breaking below 86.01 support. The overall bias remains negative for 83.45, while the pair stays below 88.75 resistance.

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