Initially the currency rate was expected to break through the weekly S1 and try to reach the 100% Fibonacci retracement level. However, a release of worse than expected American housing data gave the opposite impulse, which returned the pair back to the weekly PP at 1.1807. On the one hand, the fact that the pair two times in a row failed to slip below the 1.1735 mark and is located now above the 100- and 200-hour SMAs suggests that it might continue to climb to the top. On the other hand, the average market sentiment remains 62%. Moreover, an area near 1.1816 represents a notable resistance, which the pair might struggle to cross. Plus, the further path to the north might be also obstructed by the boundary of a descending channel and the 55-day SMA near 1.184.
