As it was forecasted, the rate failed to make any substantial moves yesterday. To be precise, bears tried to push the pair to the bottom at least three times but all these attempts were neutralized by a combination of the 55- and 100-hour SMAs. Accordingly, today it is testing an area between the 1.1985 and 1.1995 levels. Certain technical suggests that this attempt will fail, as the pair is overbought. On the other hand, the rate experiences constant pressure from the above moving averages, which now became also strengthened by the 200-hour SMA. From this perspective, the surge towards the weekly R1 seems a more likely scenario. In addition, if the German ZEW Economic Sentiment will justify expectations that could give the Euro a necessary impulse to reach the above target.
