Range Markets

As it was expected, different news coming from the United States and Asia created a downside momentum that allowed traders with bearish outlook to push the currency pair down to the 113.65 level.

The further deprecation of the buck was stopped by a slope consisting from October 16 and October 31 minimums. An existence of this support barrier as well as President Trump’s arrival to China suggests that the currency rate might resume the surge despite the pressure from 200-, 100- and 55-hour SMAs.

On the other hand, over the last two days the pair has formed a minor descending channel, which implies that the above moving averages should be strong enough to force the rate to make a rebound from the upper boundary of that pattern.