The 55-hour SMA was the main driving force for EUR/USD on Friday, thus allowing bears to continue dominating in the market. The rate reached a new six-month low of 1.650 mid-session.
Strong upside momentum for the Euro was provided by Italian politics which brought back some optimism in the given currency. At the time of this analysis, the pair had surpassed the 55-hour SMA and was testing the 100-hour SMA near 1.1730.
The pair is generally expected to recover this week, so this moving average and the nearby-located 200-hour SMA should be surpassed. Today’s target is the 1.18 mark. However, it should likewise be noted that the Euro remains exposed to political developments in Italy that could have negative impact on the pair negatively, resulting in a fall down to the weekly S1 at 1.16 today.
