A reversal from the senior channel and a breakout from a junior one was followed by a 48-pip surge on Tuesday. The Euro managed to push through several resistance levels until the 200-hour SMA at 1.1635 was reached early today.
Given that the 1.1650 area is likewise strengthened by the 55-, 100– and 200-period (4H) SMAs, bulls could be reluctant to push the rate above this resistance cluster. Technical indicators are likewise bearish for this session. A near-term support target is the 55– and 100-hour SMAs and the monthly S1 at 1.1580.
If no downside pressure pushes the rate below this mark, it is likely that the Euro trades with low volatility in between the aforementioned barriers today.
