As the currency rate was falling the last three weeks in a row, traders used the Federal Funds Rate hike to sell the Dollar and elevate the pair to the 1.1844 level.

As long as market sentiment remains predominantly bearish the rate is expected to continue moving in southern direction. As for today, a deep plunge back to 1.1776 seems unlikely, as this road is obstructed by the weekly and monthly PP as well as the 200-hour SMA.

From this perspective, the pair most probably will make another rebound and resume the upward movement towards the upper boundary of a medium-term descending channel. However, there is a need to take into account an effect from today’s ECB meeting and American data release, which are likely to alter the above scenario.