Following the strong depreciation of EUR/USD on Wednesday, the pair stabilised and was trading slightly above the weekly S1 at 1.1553 yesterday. A fall down to the one-year low at 1.1520 did not follow.
This lack of direction stopped early on Friday when the pair, boosted by successful talks in the EU Economic Summit, surged 74 pips in one hour and consequently breached the weekly PP and the 55-, 200– and 100-hour SMAs.
It seems that this bullish sentiment could still guide the pair in this session, supported by hourly SMAs. However, traders should consider the 100– and 200-period (4H) moving averages that are located at the upper channel line near 1.1680.
Bulls might be reluctant to breach this cluster, thus leaving the rate ranging in between hourly and four-hour SMAs.
