The bullish sentiment that prevailed this week was stopped abruptly by the 113.60 mark. As a result, the pair breached a short-term ascending wedge and tried to edge lower until the 55-hour SMA located circa 113.30 was reached. The bottom boundary of a one-week channel has not yet been reached. Thus, the pair might try to push for this line today. However, the 55-hour SMA might provide significant support. It is likely that this moving average guides the pair for most of this session, thus stranding the US Dollar between this line and the weekly R1. The latter is likewise located near December high of 113.68. On the other hand, the ultimate daily low is likely to be the 113.00 area where the 100– and 200-hour SMAs and the 50.0% Fibo are located.
