Due to bearish pressure exercised by the 55-, 100- and 200-hour SMAs the currency exchange rate ended previous trading session below the 38.2% Fibonacci retracement level at 1.1760.
In result of this movement, the pair broke through the bottom boundaries of two junior ascending channels.
Despite the minor recovery of Euro the downward movement is expected to continue, being mainly driven by optimism surrounding tax reform.
From technical perspective, the surge of the Euro should be neutralized by a combination of the above moving averages together with the updated weekly PP at 1.1777.
In case these barriers are broken, the rate would still have another resistance line set up by the monthly PP at 1.1807.
The opposite side, in contrast, is does not contain any notably obstacles up until support zone located between the 1.1730 and 1.1722 levels.
