Following the massive plunge mid-Friday, EUR/USD breached two patterns simultaneously, namely, an ascending wedge and a longer-term channel up. The pair halted near the 200-hour SMA circa 1.1770— a level which has managed to provide support this morning, as well. It seems that the rate is starting to recover losses, thus approaching a resistance cluster formed by the 55– and 100-hour SMAs. In general, the pair is expected to make a retracement from the bottom channel boundary in the 1.1840/60 area that should be realised within the upcoming 24 hours. Technical indicators suggest that the Euro may remain relatively stable against the Greenback, thus entering a consolidation period between the aforementioned resistance cluster and the 200-hour SMA.
