Despite release of better than expected US PPI data, bulls could not push the pair through resistance zone located between the 113.67 and 113.74 marks. Accordingly, this barrier triggered a rebound that lasted until the pair reached the 100-hour SMA.
Until publication of an update on the American inflation, the currency rate is expected to move horizontally between the 55- and 100-hour SMAs. In case of a negative result, the pair is likely to plunge to support zone located near the 50% Fibonacci retracement level at 113.00.
However, the subsequent Fed decision is likely to lead to aggressive acquisition of the buck, which will drive the rate above the 114.00 mark. In best case scenario the currency rate might end up this trading session near July maximum located at 114.50.
