The common European currency rebounded in the second half of Friday’s trading against the US Dollar, and the pair extended the gains into Monday’s trading. However, various signs are indicating that a reversal of the direction of the currency pair might soon occur. First of all the hourly chart reveals that the Euro has encountered the resistance of the 55-hour SMA at 1.1212 and the newly calculated weekly PP at 1.1216. In addition, a descending short term channel has been identified. In accordance with the pattern even if the rate passes the mentioned resistance levels, it will still face the combined resistance of the channel’s upper trend line and the 100 and 200-hour SMAs. All of these resistance levels are slowly moving lower.
