On Friday, the EUR/USD currency pair jumped to 1.2040. During today’s morning, the pair was testing the resistance level—the weekly PP at 1.2047.
Given that the exchange rate is also pressured by the 200-hour SMA near 1.2060, it is likely that some downside potential could prevail in the market. The rate could decline to the weekly S1 at 1.1956.
Meanwhile, note that the currency pair is supported by the 55– and 100-hour SMAs in the 1.2000/1.2020 range. Thus, the pair could trade upwards and target the weekly R1 at 1.2140 in the short run.
