Wednesday’s session was spent in a relatively calm manner for EUR/USD, as the rate remained fluctuating between the weekly R1, the 55– and 100-hour SMAs and a strong resistance/support level at 1.2385.
The necessary momentum to breach the southern barrier was provided mid-session. Better-than-expected US GDP data put downward pressure on the pair as a result of which the Euro plunged 0.84% in a couple of hours. The 200-hour SMA and the weekly PP were likewise breached.
It is expected that the general tendency for the pair is northwards today, as supported by technical indicators. Bulls could find some resistance near the 1.2350 area, but it should eventually be breached to allow for a test of the daily high at 1.24. Meanwhile, a fall below 1.23 is unlikely.
