After reaching the 1.1960 level the currency exchange rate returned back to the 55-hour SMA located at 1.1900, as expected. The correction was based on hawkish comments made by the Fed’s Kaplan as well as anticipation of the Governor Powell appear before Congress and Trump’s meeting with Senate Republicans regarding the new tax reform. If traders concentrate on positive moments of those meetings, the pair is likely to plunge even further, towards combined support formed by the weekly PP and the 100-hour SMA near 1.1865. Even though bears might take the lead in second half of the day, the overall movement of the rate is still expected to be guided by bulls. Their first goal is expected to be the new resistance at 1.1960, while the ultimate is located at 1.2000.
