The US Dollar continues to stall around the resistance level $104.06. Unless there is a clear breakout above this level, we choose to stand aside and only buy above 104.61 or go short upon a clear rebound from $104.06. If the latter is the case, then we expect to continue short with the impulsive wave (c) to the lower side and should be extensive in nature. We expect to trade this pair alongside USD/CHF and EUR/JPY. These pairs have a strong positive correlation of up to +76% and will have a similar price action during this intraday.
As long as the level $104.06, expect a possible bearish price movements towards 101.72 or even lower. Buy positions are only recommended above 104.61 with an ideal target at $106.52.