The common European currency continues to strengthen against its American counterpart in a short-term ascending channel.
The pair managed to accelerate from the 200-hour SMA on Monday, and it was trading at the 1.1720 mark early today. This 1.1740/50 range coincides with the weekly R1, the upper boundary of a four-month channel down, a historically strong support/resistance level and the 200-period (4H) SMA.
The Euro has returned to the overbought territory, and technical indicators flash strong bearish signals. Thus, the 1.1750 area is expected to be a point of reversal that should pressure the rate lower down to the 55-, 100– and 200-hour SMAs near 1.1630.
