Despite trying to accelerate against the US Dollar early on Friday, the common European currency failed to overcome the psychological 1.25 mark. The subsequent reversal was followed by a breach of the 55-hour SMA and the monthly R3 which left the rate between this resistance and the 100-hour moving average.
Technical indicators are generally neutral, thus pointing to a possible period of consolidation. Given that the Euro managed to breach the 55-hour SMA, it is likely that traders see the strengthening of the bearish sentiment within this session and even beyond.
The dashed line on the chart represents a three-week trend-line. A breakout of this line and the 100-hour SMA and the weekly PP circa 1.2380 should confirm the aforementioned scenario.
