USD Trading Outlook (01-07-2014)

The pair has rebounded above its support and has validated a bullish flag. Further advance is therefore expected as the pair stands above its moving averages and the daily RSI is well directed above its neutrality area. Then, as long as 0.9120 holds as a support (previous resistance which now acts as a support), next up targets are set at 0.9540 (horizontal resistance) and 0.9760 in extension (October 2013 top). A third target is set at 0.9970 (horizontal resistance). Only a break below 0.9120 will turn the outlook to bearish with a first alternative target is set at 0.89 (horizontal support), and 0.8650 in extension (January bottom).