The previously-drawn channel failed to bound the rate, thus demanding a slight adjustment. As a result, the new channel demonstrates that this pattern was breached late on Tuesday after a massive intra-day fall earlier the day.
After bouncing off the 100-hour SMA and the weekly PP, the US Dollar returned near the bottom channel boundary and fell once again in the wake of solid data on Canadian Manufacturing Sales.
It is possible that the rate remains stranded between the 55– and 100-hour SMA in a narrow range until one of these levels is breached.
Technical indicators demonstrate mixed signals. However, they still favour a possible increase in the upcoming hours. The pair’s trading range until mid-Thursday could be between the weekly PP and R1 in the 1.2407/1.2548 area.