After failing to surpass the resistance of the 55– and 100-hour simple moving averages, the common European currency went for another decline against the US Dollar on Monday. The pair, however, failed to fall below the psychological 1.19 mark, thus providing the second confirmation of a five-day descending channel.
As apparent on the chart, this pattern has altered the rate’s steep fall during the previous two weeks. This might point to a possible medium-term recovery starting later this week. In order to edge higher today, the Euro has still to overcome the aforementioned SMAs near 1.96.
Given that the Fed Chief Powell and the US President Trump are to speak today, the rate might push as high as the 1.2000/30 area, while a breakout from the weekly S1 should result in a test of 1.18.
