Even though the Euro managed to surpass the 100-hour SMA on Tuesday morning, further advance did not follow, thus leading the rate back in the narrow range between the 100– and 55-hour moving averages. A breakout of the former occurred early in the Asian session.
It is apparent that the pair’s movement during the previous two days has been tended towards the more senior channel and the 200-hour SMA at 1.1825. This mark is the most probable upside target for today if the 1.1785 area is breached within the nearest hours.
However, technical indicators flash bearish signals in line with which the Euro should approach the six-month low of 1.1719 and edge even lower down to the weekly S1 at 1.1685. FOMC Meeting Minutes are published later in the day at 1800GMT.
