The common European currency gained enough strength from the support of the 38.20% Fibonacci retracement level to break the descending pattern, in which it traded against the US Dollar. However, the surge was stopped on Wednesday morning by the weekly PP, which is located at the 1.1216 mark. If the resistance is broken during the day’s trading session, it is most likely that the currency exchange rate will ascend to the 200-hour SMA at the 1.1233 level. On the other hand the pair might begin a decline. However, it is highly unlikely as the 55 and 100-hour SMAs are providing support to the currency exchange rate near the 1.1210 level. Meanwhile, as it can be observed on the right, the daily technical indicators are forecasting a surge on a daily timeframe.
