In result of the previous trading session, the pair made a breakout from rising wedge pattern that formed at the intersection of two junior ascending channels.
Surprisingly, but traders did not show much interest to release of the American housing data or successful vote in the House. Accordingly, the exchange rate continues to slowly climb towards the weekly R1 located at the 1,266.05 level.
A major recovery of the buck even in case of adoption of tax bill by the Senate looks doubtful, as the southern side is reliably covered by the monthly S1, the 55- and 100-hour SMAs plus the lower boundary of one of the above channels.
On the other hand, a serious appreciation of the bullion is also uncertain due to resistance posed the 38.2% Fibonacci retracement level at 1,268.00.
