Due to interest rate hike by the , the currency exchange rate got a downside momentum, which lasted until the pair reached the last combined formed by the weekly S1 and the 50% level at 112.45. A successful recovery of the buck looks unlikely, as the rate will need to cross a combination of the weekly PP , the 200-hour and another level near the 113.00 mark. In addition to that, the northern side is strengthened by the falling 55- and 100-hour SMAs. From the opposite direction, the pair, in contrast, faces no notable support levels up until the 112.10 mark. In support of this assumption, majority in pending orders in 100-pip range are set to sell.
Because of release of better than anticipated information on the American Core Retail Sales as well as the pressure from 55-, 100- and 200-hour SMAs, the currency rate broke through support zone located between the 112.70 and 112.62 marks. During trading session the pair is expected to continue moving to the bottom due to absence of any barriers on its way up until the 112.00 mark.
Generally, a new rebound might happen only at the 38.2% Fibonacci retracement level located just at the 111.65 mark. This assumption is supported by the fact that rate is fluctuating in a junior descending channel. On the other hand, an empty economic calendar as well as very intense previous three trading days suggest that fall of the rate might will be stopped already near the above support at 112.00.
Check out our trading platform: