Following two days of decline which started on Tuesday, the Euro tried to regain some of the lost positions yesterday. This appreciation, however, was not long-lived, as the combination of the 55– and 100-hour SMAs continued to provide an unbreakable resistance for the pair.
During the last week, the pair has diminished its trading range within a six-week descending channel, thus forming a junior wedge. It is expected that this pattern is eventually breached to the upside, so that the rate could test the senior pattern and the 200-hour SMA near 1.1760. This means that the 55– and 100-hour SMAs should eventually be surpassed.
It is likely that these lines still provide strong resistance today prior surrendering early next week.
