The common European currency after the large Friday’s jumps against the US Dollar met with the resistance of a dominant descending channel. The event took place just as the last week’s trading ended near midnight between Friday and Saturday.
On Monday the currency pair declined down until the decline was stopped by the combination by all of the three SMAs that are used by Dukascopy Analytics on technical charts.
A trader needs to watch the SMAs. They will either push the rate higher or, as they are passed, the rate would drop down to the next support level. The next support level below the SMAs on Monday was the weekly S1 at 1.1570 mark.
