Lack of fundamentals on Friday resulted in the Euro trading sideways against the US Dollar. Its movement was guided by the 55-hour SMA until an upside breakout occurred early in the Asian session. This strong upside momentum began when the rate reversed from the monthly PP and the bottom boundary of a four-month channel near 1.2285.
Given that the Euro also surpassed the 100-hour SMA circa 1.2320, it might still push higher within this session. A possible upside target could be either the 23.60% Fibo retracement or the 200-hour SMA at 1.2360 and 1.2375, respectively.
The testimony of the ECB President Draghi at 1400GMT could introduce some volatility in the market. In case downside risks prevail, a subsequent fall is not expected to exceed the 1.2280 mark.
