EUR/USD remained stranded between the 55– and 100-hour SMAs and the senior channel on Tuesday morning.
The pair failed to gather the necessary upside momentum to push through these lines and the monthly PP circa 1.2320, thus allowing bears to breach the six-month senior channel. The 40-pip fall which occurred mid-session was stopped near the weekly S1 at 1.2250.
The pair has since recovered and is approaching the combined resistance of the aforementioned SMAs and the senior channel line near the 1.23 territory. This level is unlikely to be surpassed in case US fundamentals released mid-session do not provide strong bullish momentum. Gains, however, should not exceed 1.2320.
Meanwhile, it is more likely that the Euro is pressured lower down to 38.20% Fibo at 1.2236.
