On Tuesday, the common European currency once again failed to overcome the psychological 1.24 mark which has worked as a strong resistance this month.
Being pressured by the weekly R1, the pair reversed from this level and was pushed back down to the 55– and 100-hour SMAs and a junior channel line circa 1.2350. The Euro could go for a re-test of the senior pattern during the first part of the day, as the 55-hour SMA is likely to hinder an immediate breakout south.
However, given the pair’s ability to accelerate during the past trading sessions, the bearish sentiment should eventually take the dominant hand. A significant fall is not expected to occur today due to the 100– and 200-hour SMAs and the weekly and monthly PPs located nearby in the 1.2350/1.2300 area.
