Since Wednesday, the EUR/USD currency pair has been testing the resistance level—the weekly R1 at 1.2140.
If the given resistance level holds, the exchange rate could bounce off and trade downwards in the short run. Note that the rate could gain support from the 100– and 200-hour SMAs, as well the weekly PP in the 1.2047/1.2080 range.
In the meantime, note that the currency pair could gain support from the 55-hour moving average near 1.2120. Thus, some upside potential could prevail in the market, and the pair could try to surpass the 1.2180 mark.
