On Thursday, the EUR/USD currency pair declined to the monthly S2 at 1.0650. During today’s morning, the pair reversed north.
Note that the exchange rate is pressured by the 55-hour SMA near 1.0850. Thus, some downside potential could prevail in the market. In this case the rate decline to the support level formed by the weekly S3 and the monthly S3 at 1.0500.
However, if the monthly S2 holds, it is likely that the Euro could consolidate against the US Dollar in the short run. Also, it is unlikely that bulls could prevail, and the pair could exceed the monthly PP at 1.0968.
