The way the currency pair ended up previous trading day shows how it is important in certain cases to take into account the overall market sentiment. As it can be seen from the chart, yesterday the exchange rate has successfully managed to break through a combined resistance level set up by the 100- and 200-hour SMAs as well as the weekly PP.
Despite the 22-pip fall in the early morning, it seems that the rate is moving in a narrow short-term ascending channel. If this assumption is true, the pair might get a chance to gradually surge to the area between 110.10 and 110.30 levels, which represents a location of the northern boundary of a senior descending channel.
