As it was expected, the Dollar continued to appreciate against the Euro and reached the bottom edge of medium-term descending channel yesterday. In fact, a reaction of traders on release of the CB Consumer Confidence even pushed the pair a little bit outside the pattern. But the subsequent Janet Yellen’s speech returned it back to the 1.18 area. Although bears are relentlessly trying to push the rate to the south, from trade patterns perspective a rebound should follow. In favour of this scenario speaks the fact that the pair is located at the intersection of lower boundaries of two descending channels as well as the weekly S2 at 1.1774. On the other hand, the 55- and 100-hour SMAs most probably will try to block any attempt to return back to the 1.1861 levels.
