On the daily chart below, we can
see that the market broke the 134.50 resistance with conviction. The breakout of
the falling channel should lead to a big correction to the 142 level, but
before that, there are strong swing levels to break like the 134.50 level and
the fundamentals need to be in favour of the USD.
The moving
averages are clearly pointing to the upside and the red long period moving
average will act as support for the buyers. On the risk
side, the price may be a bit overextended and we may see a pullback to the
135.00 price area before another push towards the 138 handle.