In line with expectations, a pressure from the 55- and 200-hour SMAs, better than expected German release as well as general informational background helped to pair to make a breakout from an ascending triangle pattern yesterday. From technical point of view, the currency rate is continuing to feel pressure from the bottom from the before-mentioned moving averages. Hence, an area between 1.2030 and the weekly R1, which is located at the 1.2039 level, represents the next likely target to be reached by the pair. By the way, the moment of approaching to this resistance level practically coincides with the announcement of the Federal Funds Rate. In addition, that area also represents a breakout point from the recently formed rising wedge pattern.
