Despite release of negative data about the American housing market growth, the exchange rate continued to move to the bottom, in the process crossing a combination of the weekly S1 and the lower support line of senior ascending channel. At the moment, the pair is testing the 61.8% Fibonacci retracement level at 1,278.98. It seems that pressure from the slipping 55-, 100- and 200-hour SMAs should eventually push the pair through that barrier. Afterwards, the pair would face no obstacles on its way up until the weekly S2 at 1,265.92. On the other hand, daily chart clearly indicates that an area near 1,276.34 represents location of the 100-day SMA. From this perspective, it seems that the pair is going to make a temporary rebound.
