The Euro’s movement during the previous session reveals the strengthening of the bearish sentiment. After reaching a daily high of 1.2305 early on Wednesday, the pair managed to breach the 55– and 100-hour SMAs and the monthly R2.
As apparent on the chart, the Euro has formed a minor descending channel. In line with this pattern, the rate should edge higher towards 1.2240. Given that this area is reinforced by the aforementioned lines, a breakout might not occur. On the other hand, the southern barrier is set by the weekly PP, monthly R1 and the 200-hour SMA. This cluster is also likely to hold strong, thus stranding the rate in the 1.2230/15 area for the whole session.
