In line with expectations, the currency rate reached and made a successful rebound from the bottom trend-line of a senior ascending channel. Fortunately for the buck, this technical moment matched with release of information on the US non-manufacturing activity. However, the surge did not last for long, as it was quickly stopped by a combination of the 55- and 100-hour SMAs. Such outcome suggests that today bears are going to try to restore lost positions and push the pair back to the bottom at least until the 200-hour SMA, which is located near the 112.55 level. The fact that the dominant channel already consists of five confirmation points implies that a breakout is likely to happen in the nearest future. This assumption looks even more probable amid the pair’s failure the surge above the 113.20 level.
