Contrary to expectations, the exchange rate failed to sneak below the combined support formed by the lower trend-line of a junior ascending channel and the 200-hour SMA.

In other words, bulls made one more, though unsuccessful, attempt to push the bullion through the upper boundary of a four-month long dominant descending channel.

In larger perspective, the pair is still expected to make a fully-fledged rebound from this boundary even though the current horizontal movement might last for another two weeks because of support provided by the 61.8% Fibonacci retracement level at 1,311.48.

On hourly chart a combination of the weekly PP, the 55- and 100-hour SMAs most probably will prevent the pair from falling below the 1,316.00 mark during this trading session. However, this scenario might be altered due to fundamentals, such as the US PPI data release.