In line with expectations, during the previous trading session the currency exchange rate managed to soar to the weekly R2 at 1.1878 and made a subsequent rebound from it. Despite the 23-pip depreciation of the Euro, the pair did not fall beyond the 55-hour SMA near 1.1828, as it was additionally protected by the support line of a rising wedge. Hence, in first half of Thursday, the rate is expected to resume the surge towards the above weekly R2. However, then two scenarios might happen. Either the pair will bounce off from it and, thus, repeat yesterday’s scenario, or it will succeed to break to the top and, thus, continue to gradually move within the active pattern. The seconds scenario seems more realistic, especially taking into account that the rate continues to move along the above 55-hour SMA.
