On Wednesday, the EUR/USD currency pair tested the monthly R1 at 1.1285. During today’s morning, the pair declined to the support formed by the weekly PP and the 200-hour SMA at 1.1226.
If the given support holds, it is likely that a reversal north could occur in the nearest future. In this case the exchange rate would have to surpass the 55– and 100-hour SMAs in the 1.1230 area.
Otherwise, it is likely that some downside potential could prevail in the nearest future. In this case it is unlikely that the currency pair could decline below the monthly R1 at 1.1157.
