The common European currency has been steadily appreciating against the US Dollar for the third consecutive session. This movement has been confined in two opposing channels.
Except for a 56-pip surge, the equal force of bulls and bears maintained the rate steady on Tuesday. The Asian session did not introduce massive changes, as the Euro remained lingering slightly below the upper boundary of the senior channel and the monthly PP at 1.2320.
It is likely that the bearish sentiment guides the pair today. Even if the senior channel is not respected, a move above 1.2360 is unlikely. Instead, the pair should approach a support cluster set by the 55–, 100– and 200-hour SMAs and the weekly PP at 1.2280. This level is expected to hold in case the US PPI at 1230GMT does not change this assumption.
