Following a slight period of weakness on Wednesday morning, the Euro picked up momentum against its American counterpart and reached the 55-hour SMA. This line nevertheless continued to pressure the rate, thus guiding its movement during the second part of the day. By Thursday morning, the Euro had returned near the combined resistance of the weekly S1 and the 55-hour moving average.
Technical indicators are starting to recover both on the 1H and 4H time-frames, demonstrating that the expected medium-term appreciation might be under way.
The base scenario for this session favours a breakout from the 1.1880 area and a subsequent surge to the 100-hour SMA at 1.1920. This level should likewise surrender and allow for further advance towards 1.20.
