As the United States released its inflation data, the EUR/USD began to trade with high volatility on Wednesday. The high volatility ended below the 200-hour SMA at the 1.2066 level. The rate’s decline appeared to have been stopped by the support of the 1.2053/1.2070 zone, which provided both resistance and support on May 6.
During the early Thursday’s trading hours, the rate started a recovery, which could encounter resistance in the weekly simple pivot point at 1.2109, the 55-hour simple moving average and the 100-hour simple moving average near 1.2120/1.2130.
In the case of the rate passing the resistance of the weekly simple pivot point and the 55 and 100-hour simple moving averages, the EUR/USD could return to testing the resistance of the 1.2175/1.2180 zone.
On the other hand, a potential decline would test the 1.2053/1.2070 zone’s support and afterwards the weekly S1 simple pivot point at 1.2047.
