The release of US monthly employment data on Friday caused an increase of volatility, which broke the channel up pattern that guided the rate since August 19. Afterwards, the rate began a decline. On Monday morning, the currency exchange rate’s decline passed the support of the 55-hour simple moving average. In the near term future, the rate was expected to look for support in the combination of the weekly simple pivot point and the 100-hour simple moving average at 1.1858 and 1.1848. Moreover, the 1.1850 level could provide support.
In the case that the rate recovers from the mentioned support levels, the rate would surge. A potential surge most likely would test the resistance of the 1.1900 and afterwards the weekly R1 simple pivot point at 1.1933.
However, a decline of the EUR/USD currency exchange rate below the 1.1850 level could look for support in the 200-hour simple moving average and the weekly S1 simple pivot point at 1.1810 and 1.1806.
