The common European currency was not able to surpass the strong resistance of the 55-hour SMA on Tuesday morning as a result of which bears saw an opportunity to push the rate lower. This fall was limited by the weekly S1, thus leaving the rate floating slightly above the 1.1850 mark this morning.
The Euro should return near the 55– and 100-hour moving averages during the following hours. The upper boundary of a five-day descending channel is likewise located in this area.
It is likely that pair lacks the necessary momentum in this session, thus remaining trading along the 55-hour SMA. The expected bullish reversal, however, should occur later this week.
Today’s upside potential is until the 200-hour SMA at 1.20, while a fall should not surpass the 1.1775 level.
