In result of a breakout from the rising wedge, which matched with escalation of tensions between Spanish and Catalan governments, the exchange rate surged to the 1,290.50 level. In the process, the pair made multiple attempts to bypass the 100- and 200-hour SMAs but each time failed. As a result, it was forced to retreat back to the weekly S1 at 1,284.92. An aggregate of technical indicators points out on further depreciation of the yellow metal via sending strong sell signals. This assumption is also supported by the fact the pair is fluctuating in a minor ascending channel, which consists of two reaction highs and only one reaction low for now. Hence, bears have an opportunity to push the price back to the 1,279.00 area, which presents location of the 61.8% Fibonacci retracement level.
