One of the ideas expressed yesterday appeared to be true. The currency pair, indeed, formed a minor descending channel and after forming the second reaction low used the 200-hour SMA as a springboard to break through a combined resistance set up by the weekly PP at 111.90 in conjunction with the 55- and 100-hour SMAs. Despite disappointing Yellen’s speech the rate even managed to test the monthly R2 at 112.55. Basically, today the buck has all means to make the sixth attempt to break to the top. But the fact that the northern side is secured by the upper edge of a long-term dominant pattern plus the above monthly R2, this new attempt is expected to fail again.
