Downside risks dominated the common European currency was on Thursday, as rather disappointing Euro zone’s PMI and German factory orders restricted the pair from breaching the 55-hour SMA. The pair fell to a short-term trend-line and the 38.20% Fibo retracement and has since remained trading at the given level.
Technical indicators suggest that the same bearish sentiment which has dominated the Euro for the last eight sessions could prevail in this session, as well.
Downside potential is apparent until the 2017 low, the weekly S2 and the monthly S1 at 1.2165. However, it is unlikely that such a plunge would occur today, thus setting the 1.22 mark as a more probable target.
Meanwhile, the pair is not expected to surpass the psychological 1.23 mark due to the 55– and 100-hour SMAs.
