After making a rebound from the upper edge of the currently active descending channel, the pair slipped through the 38.2% Fibonacci retracement level and landed on the weekly S1 at 110.84. As early hours of the current trading session did not bring any significant news, the pair made a rebound and approached the upper trend-line for the second time. As the boundary is secured by the falling 55- and 100-hour SMAs, it is unlikely that bulls will manage to break the pattern. On the other hand, a reaction on various events in the United States might lead to short-term spike to the 111.60 level. However, even in case this scenario materializes, the general downtrend should not be affected due to resistance formed by the 100- and 200-day SMAs that are explicitly seen on daily chart.
