The EUR/USD currency pair bounced off the resistance level at 1.2340 and dropped to the support provided by the 200-hour SMA near 1.2260.
If the given support hold, it is likely that the exchange rate could recover within the following trading session. In this case the rate could re-test the predetermined resistance level.
Meanwhile, note that the currency pair would have to exceed the 55– and 100-hour SMAs, as well the weekly R1 in the 1.2280/1.2300 range. If the given area holds, some downside potential could continue to prevail.
