US dollar initially rallied on Friday, but then pulled back to give the gains away

The US dollar initially rallied a bit during the trading session on Friday, rolling over at the 107.80 level. By pulling back the way we have, we sliced through the 107.50 level, an area that has been resistance in the past. The fact that the level has been sliced through suggests that although this market retains its positivity, it still has a lot of noise to deal with and I think that it is only a matter of time before the buyers will return. By doing so, the market is likely to see buyers looking for value, and I think that eventually we will go to the 108 level above. I believe that the market should continue to be noisy and based upon the headlines coming out of the United States and China, as we worry about a potential trade war.

If we break down below the 106.50 level, the market could then go down to the 106 level, perhaps even the 105 level. That’s an area that has been supportive in the past and coincides nicely with an uptrend line. Because of this, I believe it’s only a matter of time before the buyers will be looking for some type of value in this market, and then I believe we could go towards the 110 level once we finally do get enough momentum to break out to the upside. Remember, this is a very rest sensitive market.