The US dollar found support yesterday on the top of the cloud on the day chart which also coincided with the 50% retracement line giving this pair a bounce up from yesterday’s close, at 122.406, up to 122.995. Today’s rally has been limited by a slow market and by the resistance met on the 38.2% retracement line at 123.03. After having tested that level in the afternoon the London session closed below it. However looking at the ADX/DMI and Stochastic Oscillator on both the day chart and 4Hr chart both are showing signs of upward momentum. Price action might be expected to rebound first from the resistance line but this pair looks set to new higher levels again as it bounces of the Cloud on the day chart.