EUR/USD failed to pick up momentum on Wednesday and remained below the 55-hour SMA. The downside momentum was strong enough to breach the 100-day SMA at 1.22 and push the rate down to the monthly S1 and the weekly S2 at 1.2170.
Given that the pair has failed to move below this level since the very beginning of 2018, the first part of the session should mark a slight recovery up to the 55-hour SMA, the weekly S1 and the 38.20% Fibonacci retracement.
Traders are likely to maintain volatility at low levels during this time prior to the ECB Minimum Bid Rate and the press conference today at 1145GMT and 1230GMT, respectively. These releases could guide the market sentiment during the second part of the day. The pair, however, should remain in the 1.2150/1.2300 range.
