Contrary to expectations, the common European currency was guided by bears on Thursday. This strong momentum south allowed the pair to dash through the combined support of the 55-, 100– and 200-hour SMAs and the weekly PP. The second part of the day showed high volatility in both directions which allayed considerably during the Asian session early today.
It seems that bulls could be ready to push the rate away from its two-week low of 1.2290 and regain some of its positions lost yesterday. The Euro is likely to aim for the resistance cluster formed by the aforementioned SMAs and the 23.60% Fibo retracement near the 1.2360 area.
In case of favourable US Building Permits, this level might even be breached to the upside, thus setting 1.2380 as a daily high.
