On Wednesday, the EUR/USD currency pair failed to surpass the monthly R1 at 1.1246. During today’s morning, the pair was testing the support formed by the Fibo 38.20% and the 55-hour SMA at 1.1200.
If the given support holds, it is likely that a reversal north could occur. Meanwhile, note that the exchange rate could remain under pressure of the monthly R1 and trade sideways in the short run.
If the given support does not hold, it is likely that the rate could continue to trade downwards in the nearest future. In this case the rate could gain support from the 100-hour SMA near 1.1160.
