- DASH/USD consolidating break below strong support at 50-DMA (967) and daily cloud.
- Downside has taken support at 100-DMA, the pair has retraced brief dip below.
- The pair hit lows of 640 on Tuesday's trade, but pared losses to close above 100-DMA.
- Price action today rages in narrow range above 100-DMA, we see weakness only on break below.
- Momentum studies are bearish, RSI is now biased lower. -ve DMI dominance seen.
- Break below 100-DMA opens up downside, raises scope for test of 600 levels ahead of 200-DMA at 463.
- On the higher side, break above 5-DMA at 910 to see next major resistance at 50-DMA at 975.
Support levels - 691 (61.8% Fib), 651 (Dec 10 low), 666 (100-DMA), 600 (Nov 28/29 low), 463 (200-DMA)
Resistance levels - 870 (50% Fib retrace of 115 to 1625 rally), 909 (5-DMA), 974 (50-DMA), 1048 (38.2% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-DASH-USD-finds-strong-support-at-943-100-DMA-good-to-go-short-on-break-below-1092504) has hit all targets. Book full profits.
Recommendation: Watch out for break below 100-DMA for further weakness.
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