EUR/USD demonstrated high volatility in both directions during the previous session, as it was fluctuating within the bounds of 1.2335/1.2419. The upper barrier was provided by the 55-, 100– and 200-hour SMAs and the weekly PP, while the 23.60% Fibo retracement restricted the pair from below.
The slight upward movement during the Asian session suggests that the Euro might be tended north today. Gains, however, should be capped near the 1.2430 mark, as bulls are unlikely to surpass the massive resistance cluster located nearby.
If the previous volatility still persists in the market, traders could expect the pair to remain in the same range as yesterday or even fall down to the monthly PP at 1.2289. Technical indicators favour the bullish scenario.
