The last two trading days were beneficial for the EUR/USD exchange rate, with it edging 1.36% higher. During this time, the pair surpassed the 55-, 100– and 200-hour SMAs and breached a two-week channel down. This bullish sentiment was strengthened on Friday following the US President Donald Trump’s comments of the strong US Dollar.
By Monday morning, the Euro had reached the combined resistance of the 23.60% Fibonacci retracement, a trend-line and the weekly R1 in the 1.1755/1.1800 range. Technical indicators flash bearish signals, demonstrating that the rate should respect this cluster and move lower.
Given that no important fundamental releases are scheduled today, it is unlikely that the 1.1680 mark is breached due to various SMAs located there.
