In accordance with expectations, for couple of hours the fall of the exchange rate was stopped by the 100-day SMA. However, a release of better than expected information on the US manufacturing activity ultimately led to appreciation of the buck against all major currencies including the gold.
From technical perspective, the pair is about to reach to weekly S1 at 1,266.63, which represents the only notable support level that separates the pair from the bottom edge of a dominant ascending channel.
Given that informational background remains in favour of the buck and there are scheduled no macroeconomic data releases today, the pair is expected to successfully bypass this barrier and continue to move to the south.
However, there is a need to take into account that the average market sentiment became 59% bullish.
