The common European currency still continues to weaken against the US Dollar for the second week.
The first part of Wednesday’s trading session showed some signs of recovery due to allayed bearish pressure; however, the bulls were not strong enough to overcome the weekly S1, the 55-hour SMA and the 61.80% Fibonacci retracement near 1.2020. This cluster sent the pair even lower down to 1.1960 where a six-month resistance/support level and the 2018 low is located.
It is likely that the pair tries to re-test the aforementioned resistance area; this, however, will not be an easy task, as the 100-hour SMA is likewise situated nearby at 1.2050. Thus, no massive changes are expected to occur in the market today. The daily low is likely to be the monthly S2 at 1.1925 or the psychological 1.1900 mark.
