The US dollar retreated from its weekly highs and dropped to 1.2900 on Wednesday. The major touched the level in the early Asian session, but failed to regain the level right away. The US dollar spent the night struggling with the barrier and made a break lower in the morning. The spot headed towards 1.2800, reached the 1.2850 area and found fresh bids over there. As a result, the US currency pulled back to 1.2900. The resistance is at 1.2900, the support stands 1.2800.
A close below 1.2800 may generate a fresh bearish signal for further advance, which could extend to the 1.2700 barrier.