Monday’s climb of EUR/USD was reversed yesterday, as the market responded negatively to ECB officials who stressed the importance of patience when removing the stimulus. As a result, the Euro reversed from its six-week high of 1.2468 and plunged 79 pips within a couple of hours.
This fall was stopped by the 55-hour SMA which remained the guiding force for the pair in the Asian session, as well. Some bullish pressure was likewise added by missed confidence estimates in the US.
The 1.2385 mark has previously managed to form strong resistance/support, thus it is unlikely that 1.2380, reinforced by the 100-hour SMA, is breached during the first part of the day.
The upside potential is up to the weekly R2 at 1.2480. Volatility is likely to be introduced by the US Final GDP to be released at 1230GMT.
