Even though the rate had reached its five-week high at 1.2594 quite easily by early Friday, bulls managed to prevail in the following hours and thus push the rate down to the 55-hour SMA—a level which has limited the pair ever since.

It should be noted that the US Dollar has failed to reach the upper channel boundary for the last week, suggesting that the ascending channel could be breached in the upcoming sessions.

However, technical indicators still point to a possible appreciation in the upcoming 24 hours. Thus, it is likely that the support cluster set by the 100-hour SMA and the weekly PP circa 1.2525 reverses the pair to the upside.

Conversely, if this area is breached, traders could see the Greenback falling down to the 200-hour SMA and afterwards remaining circa 1.2520.