FXstreet.com (Barcelona) - Dollar decline has extended during Asian session to a 14-year low at 84.80, but although the pair has bounced to levels above 86.00, Nicole Elliott, senior technical analyst at Mizuho Corporate Bank warns about further declines in case of a weekly close below 87.00.
According to Elliott, the Dollar should close the week above 88..00 to mark an interim low: Being Friday and the end of the month Monday, closes over the next two working days are important. A monthly close below 87.00 would be very bearish, even though the US dollar is as oversold as it was in November 2007. A weekly close above 88.00 is needed to mark an interim low.
Resistance levels, according to Elliott, lie at 86.55, 87.10 and 87.50. On the downside, support levels are 85.80, 85.20 and 85.00.