FXstreet.com (Barcelona) - Dollar decline from 90.60 high on November 12 reached has extended to levels below 89.00 and it might drop well lower during the coming weeks, according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank.

According to Elliott, Dollar could drop sharply and attempt a rest of key support at 87.00: Strangely bearish momentum has not increased though the USD is not oversold either. We favour a sharp drop and a serious downside test of key support at 87.00 (and then 85.00) this week and through to December.

Support levels, according to Elliott, lie at 88.90, 88.75 and 88.60. On the upside, resistance levels lie at 89.17, 89.45 and 89.75.