FXstreet.com (Barcelona) - The Dollar sank on Monday to a fresh 7-month low at 88.20 to recover later towards levels right below 90.00, and according To Nicole Elliott, senior technical analyst at Mizuho Corporate Bank the pair will hover around here during the day.

Yesterda's low at 88.20, thus, will remain intact today and possibly, all week, says Elliott: massive 'hammer' candle yesterday suggests prices will hold above its low at 88.23 today and probably all week. This morning the corrective bounce has been capped by the 9-day moving average at 90.39 and we may hover around here for much of today.

Furthermore, Elliott sees rallies to 91.50 as good selling opportunities: Rallies towards 91.50 are seen as medium term selling opportunities for an eventual test of January's low at 87.10. The US dollar is hardly oversold any more and at-the-money implied volatility should increase as prices thrash around between 87.00 and 92.00 this month.