In line with expectations, yesterday the exchange rate did not manage to make any significant moves. From the top it was constrained by the 200-hour SMA, while from the bottom by the lower trend-line of a dominant ascending channel. From a general perspective, the rate is expected to continue to try to pave the path to the north, trying to reach by the end of the day at least the monthly R1 at 1,348.36.
A release of information on the US Core Retail Sales, similarly to the yesterday’s update on inflation, most likely will cause notable volatility in the markets. However, even in case of a positive result the buck is not expected to drag the pair out of the above formation.
