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Session Recap: Of course the US dollar rises in such a cocktail

FXStreet (San Francisco) - The US dollar rallies across the board on Monday as different participants were playing this game of thrones.

Cocktail's ingredients were: first, Mario Draghi delivered ECB new plan to boost European economy; second, the impending Scottish referendum; third, the Ukraine and Russian conflict's news on ceasefire; and fourth, news from SF's Fed that says the central bank will hike interest rate sooner than expected.

The EUR/USD declined to almost 2-month low at 1.2880 where the pair found some buying interest; however "the short term picture presents a strong bearish tone, with the 1 hour chart showing price well below its 20 SMA and indicators heading lower in negative territory," according to Valeria Bednarik from FXStreet.

Bednarik affirms that "1.2920 level, former year low offers now immediate resistance in the short term, while the downward movement can extend down to 1.2740 where the pair presents several weekly highs and from 2012 to 2013 over the upcoming sessions. If the level is reached it may be the interim bottom market players are expecting to buy."

The GBP/USD collapsed to the 1.6100 area where the pair remains to trade now in consolidation mode. "Pound may remain under pressure until upcoming September 18th, when Scotland will vote its referendum," points out Bednarik.

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