Despite several attempts to edge lower on Wednesday, the movement of the US Dollar was guided by the 200-hour SMA. As apparent on the chart, the pair has still not reached the upper boundary of a two-month channel down. This is expected to occur today.
A possible test of this line is also supported by the fact that the nearest southern barrier is provided by the 200– and 55-hour SMAs and the monthly S1 which are restricting the pair’s movement below the 107.20 mark. This might put upward pressure on the rate just to allow for a test of the senior channel.
Technical indicators are in favour of subsequent bearish pressure that should dominate the market today. Thus, the test of 108.00 could be followed by a decline in price. This, in turn, might mark the beginning of a new wave down during next week.
