FXstreet.com (Barcelona) - The Dollar bounced on Friday from 84.80, fresh 15 year low, but its recovery has been capped at 87.00 area, which according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, could be very bearish on the medium term.
Elliott affirms that a monthly close below 87.00 could determine a bearish trend for the year end: While Friday's bounce from a low at 84.82 is impressive, it has stalled at the 38% Fibonacci retracement and the 9-day moving average. If we hold below here all day today bearish pressure should increase while a monthly close below 87.00 would be very bearish for the medium term.
Resistance levels, according to Elliott, lie at 86.55, 87.00 and 87.45. On the downside, support levels lie at 86.00, 85.20 and 85.00.