The Euro was able to appreciate against the Greenback during the first part of Monday, with gains being capped at the 1.20 mark. This psychological resistance, likewise reinforced by the weekly R1, provided an unbreakable barrier which resulted in a subsequent fall down to the 200-hour SMA near 1.1925 this morning.
It is expected that the pair pushes lower during the following hours until the US Retail Sales are published at 1230GMT; this in turn could introduce volatility in the market. In case the 100-hour SMA and the weekly PP at 1.19 are breached, the Euro is likely to target 1.1860/80.
Meanwhile, a failure to do so should result in the pair surpassing the weekly R1 at 1.20. This move might be an early indication that the expected medium-term surge is to begin soon.
