The Euro managed to remain near 1.24 during the Asian session early on Wednesday, thus trying to gain enough strength to surpass the weekly R1 at 1.2412.
Bears saw an opportunity to push the rate lower—a move which was strengthened by rather dovish comments from the ECB President Draghi during the first part of the day. The subsequent fall, however, failed to match support set by the 55– and 200-hour SMAs and the 23.60% Fibo at 1.2360.
It is likely that this barrier pressures the rate higher during this session, especially when a strong support cluster near 1.2355 is apparent on the four-hour chart, as well.
Gains are likely to be capped near the one-month high of 1.2440. The prevalence of this scenario would push the Euro closer to a medium-term channel circa 1.2450.
