Despite release of better than expected American housing data the bullish pressure prevailed. The surge was supported by a combination of the 55-, 100- and 200-hour SMAs in conjunction with the monthly PP. However, the fact that the pair managed to break through the upper boundary of medium-term ascending channel and practically reach the monthly R1 at 1,298.01 suggests that traders were also concerned about discussion and vote on the new tax reform plan. At the moment, it is too early speak about dissolution of the above pattern, as it is possible to simply adjust its boundaries. In that case, the exchange rate is expected to start moving in the opposite direction and trying to reach the weekly PP at 1,287.22, which soon will become additionally strengthened by the rising 55-hour SMA.
