On Wednesday various events can be expected.
- First of all, a new short term ascending pattern should be spotted.
Secondly, as the pair has reached above the resistance of the weekly S1, the rate will set out to test the resistance of the various hourly SMAs, which are located near the 1.1770 mark. However, it is most likely that the resistance of the simple moving averages will be passed.
Most recently the pair reached the resistance of a junior channel up pattern, which was supported by the weekly PP near the 1.1790 mark. As a result of the encounter, the rate began to decline, and during the morning hours of Thursday’s trading it had already passed the support of the 100 and 200-hour SMAs at the 1.1770 level.
It can be expected that by the end of the day the pair will continue to fall, as it faces the support of the 55-hour SMA at 1.1745, which might slow down the decline.