The Euro weakened against the US Dollar on Thursday morning, driven lower by the combined resistance of the 55– and 100-hour SMAs. This fall ended slightly below the weekly S1 at 1.1580 which was followed by a strong 50-pip hourly surge later in the day.
This allowed the pair to surpass the 55-hour moving average, but nevertheless was not enough to continue advancing past the 100– and 200-hour ones.
Even though the direction of technical indicators is pointed upwards, it is unlikely that this 1.1680 area is breached today, as it is likewise strengthened by the 55-, 100– and 200-period (4H) SMAs.
Thus, the general direction of the Euro should be either south down to 1.1550 or sideways in between this significant resistance and the weekly S1 located at 1.16.
