The pair failing to accelerate mid-Tuesday following a bullish breakout from the 55– and 100-hour SMAs was an early indication of a soon weakening of EUR/USD.
This scenario was fulfilled yesterday when the Euro lost 78 pips against its American counterpart and fell below the previous 2018 low of 1.17. The given fall was stopped by the weekly S1 located at 1.1685.
It is likely that the Euro tries to approach the aforementioned SMAs near 1.1760 during the following hours. Given that they have restricted effectively any attempts to accelerate during the past week, this area is unlikely to surrender today (except if fundamental events cause a strong surge north up to 1.18).
Technical signals still remain bearish, thus suggesting that today’s target should be the weekly S2 at 1.16.
