As previously expected, the combined support of the 55– and 200-hour SMAs and the weekly PP provided un unbreakable barrier circa 1.2275. This allowed bulls to take over the market and push the rate up to the 23.60% Fibo retracement at 1.2358. The Euro, however, remained reluctant to surpass the existing two-week resistance near 1.2350.
As apparent on the chart, the short-term ascending channel (drawn with dashed lines) has lost its bullish momentum.This suggests that a breakout south should occur during the following hours, thus sending the pair lower towards the 1.2275 area.
Given that the 55-hour SMA and the monthly PP are likewise located nearby, losses could be limited by near 1.23. From the upside, the weekly R1 at 1.24 is unlikely to surrender today.
