The pair reached a 2017 high last week when the rate reversed from the 9.8044 area. This suggests that a decline in both medium and long term is a likely option.
The rate is currently testing the upper line of the junior channel—an area which is likewise reinforced by the 200-hour . From this perspective, the rate should rebound from the this resistance and edge lower. However, given the steepness of the , this formation is unlikely to hold for long.
Technical indicators flash mixed signals, but the overall tendency seems to point southwards. The rate might go as low as the monthly PP circa 9.67 during the following trading sessions prior to making a minor recovery.
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