US dollar Price Analysis: Bears take out critical support on H4 chart

US dollar is pressured as the week gets going following the holidays.
The bears have broken a key structure on the 4-hour chart.

Ross J Burland FXStreet

As per the prior analysis from early in the day, the US dollar remains under pressure and has recently taken out a very key structure on the four-hour charts. The following illustrates the potential for a significant correction in the days ahead.

It was explained that the price was running into resistance but the bears needed to get below the 4-hour support if there were going to be prospects of a deeper correction for the sessions ahead.

DXY prior analysis

US dollar live update

The price broke below the 109.80s and is not headed towards a key area in the 108.90s for the day ahead if the bears can get below the trendline support.

A break here opens risk towards 108.50 and then a 38.2% Fibonacci retracement below there near 108.10. The neckline of the harmonic pattern is located all the way down at 106.93.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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