The Euro continues to move in a ranging motion against the US Dollar for the fifth consecutive session. The pair was pushed slightly lower mid-Tuesday; nevertheless, the lack of distinctive movement still continues to dominate the market.
Despite attempts to push higher during the previous session, bulls failed to overcome the strong resistance of the 55– and 100-hour SMAs and the senior channel line circa 1.2310.
Meanwhile, the pair breached a junior pattern that could be regarded as a bullish signal. From a technical point of view, this should send the pair past 1.23 and towards the 200-hour SMA. However, the Euro has struggled to capitalise on the Dollar’s weakness, and the same situation is likely to continue today.
In terms of downside potential, the rate should not fall below the 1.2240 mark.
