EUR/USD was driven by downside risks on Monday, as a move above the 1.2140 mark was restricted by the 55-hour SMA and the 50.00% Fibonacci retracement. As a result, bears pushed the rate down to 1.2070. The pair, however, halted at this four-month low reached on Friday, thus pointing to a possible change in sentiment.
A massive fall is not expected to occur in this session. The daily low is should be the same as yesterday—the weekly S1 and the 61.80% Fibo retracement near 1.2035.
It is more likely the Euro tries to push higher; however, some important resistance levels, including the 55– and 100-hour SMAs and the weekly PP, still need to be surpassed to allow further advance. These levels might hinder the pair for some hours, but the general direction should nevertheless remain north.
