The Euro was fluctuating in the 1.2343/1.2260 range on Tuesday, thus continuing its general movement sideways which began following weak US employment data last Friday.
The first part of today is likely to remain quiet, as traders are awaiting US inflation report released at 1230GMT. Thus, the Euro could trade in a narrow range between the 55-, 100– and 200-hour SMAs during this time. Resistance is likewise reinforced by the weekly PP.
A breakout is likely to determine the pair’s subsequent direction until Wednesday morning. In case 1.2360 surrenders, the Euro should try pushing for the 1.24 area.
Conversely, the prevalence of the bearish sentiment could result in a test of the 1.2250 territory where the weekly S1, the 38.20% Fibo retracement and the senior channel are located.
