In line with expectations, the currency exchange rate has successfully crossed a combination of the weekly and monthly R1 near 1.2010 and then made a rebound. The only nuance was that a rebound happened a little bit higher, from the weekly R2 at 1.2976 and continued until the 55-hour SMA. Today, two scenarios are likely to happen. In first, the currency pair might try to repeat previous day’s advance. In second, it will manage slip to the bottom and gradually continue the fall until the 100-hour SMA. It is quite possible that bears will play in favour of the buck in anticipation of release of data on the US Non-Farm Employment Change and Preliminary GDP later this day, which both are expected to show positive changes in the US economy.
