The Euro began to weaken against the US Dollar early on Tuesday after failing to move above the considerable resistance of the weekly R1 and the senior channel near 1.1720.
A large fall did not follow, as the pair was restricted by the 55– and 100-hour SMAs. This minor depreciation left the pair testing the 1.1645 mark this morning.
Technical indicators are still tended south that should point to further decline. However, traders should consider the strong support cluster formed by the 200-hour and 55-period (4H) SMAs and the weekly PP circa 1.1615. This could hinder or even halt any attempts to move below this level, thus reversing the Euro back to the upside.
Today’s highest point should be the aforementioned 1.1720 territory, while a bearish fall is unlikely to exceed 1.16.
