The Euro was appreciating steadily against the Greenback on Friday morning. The pair, however, was unable to reach the combined resistance of the 55-, 100– and 200-hour SMAs, as it started falling substantially mid-session. The rate plunged 70 pips within three hours prior to consolidating around 1.2280.
As apparent on the chart, the Euro was testing the bottom boundary of a six-month channel up and the weekly S1 on Monday morning. The pair might still edge slightly lower down to the 38.20% Fibonacci line at 1.2240 prior to bouncing off this long-term pattern. It is expected that the pair hinders near 1.23 for a few hours prior to targeting the 1.2340 area.
Even though no data releases are scheduled for today, political events in the G20 summit might cause some turbulence during the following two days.
