In line with expectations, the currency pair one more time failed to break through a combined resistance formed by the 55-, 100- and 200-hour SMAs that were slipping along the upper boundary of a recently formed descending channel. The fall of the rate was additionally supported by reports of another underground quake near North Korea’s nuclear test base. From technical perspective, the exchange rate is expected to continue to move to the south trying to reach an intersection of the bottom boundary of the pattern and the weekly S2 at 111.70. However, there is a need to take into account a release of information about the US inflation and retail sales later this day whose combined effect most probably is going to push the pair out of the channel.
