FXstreet.com (Barcelona) - The Dollar has lost about 170 pips so far today and is dropping heavy towards the 1.2400 support zone, after having bounced from levels close to the 1.2600 resistance area.

The USD seems to be tying to hold above 1.2400 support level (Feb 24 and 25 low) volatility is high and the pair is slightly oversold in the hourly chart. In case of successful bounce on current levels, the Dollar would have to get through the 1.2475/80 area before 1.25.15, and once above there, the path would be clear towards 1.2600.

On the downside further decline from 1.2400 would put the Dollar on its way to 1.2350 (Feb 23 low) and below here the dollar would be at two-week low aiming towards 1.2280 (Feb 13 low).