Following a reversal from the 105.50 mark during the first part of Wednesday, the US Dollar gathered enough momentum to dash through the 55– and 100-hour SMAs and the upper boundary of a two-week descending channel.
This movement resulted in the formation of another junior pattern which is steadily guiding the rate towards the senior channel and the 200-hour SMA near 106.25. It seems that the bullish sentiment is starting to strengthen, thus sending the pair away from the 2017 low of 105.35. The guidance of the 55– and 100-hour SMA might also help the pair to edge higher within the following trading session.
Thus, the base scenario favours the Greenback moving in line with the newly-formed channel towards 106.70. The nearest resistance is likely to hinder the pair circa 106.25 today.
