Following a few days of decline, the Euro finally recovered some losses against its American counterpart on Friday. The pair managed to appreciate limited 65 pips during the second part of the session until the combined resistance of the 55-hour SMA and the 50.0% Fibonacci retracement stopped any further advances. Some upside potential could still be apparent on Monday morning; however, the 100-hour moving average and the weekly PP circa 1.2160 are likely to stop this upward movement. Meanwhile, the expected fall should not exceed the 61.80% Fibonacci retracement and the weekly S1 at 1.2040. By and large, the general trend for this week should remain north towards the psychological 1.23 mark.
Comment:
If one looks up the hourly charts of the EUR/USD currency pair, it can be clearly spotted that the currency pair following the recent rebound against a dominant support has been stopped.
The pair’s surge was stopped by the upper trend line of a junior channel pattern just below the 1.20 mark. The event has resulted in the rates decline that on Friday morning had declined below two resistance levels near the 1.1980 level.
In regards to the near future, the pair was expected to make another attempt to pass the dominant support line below the 1.1940 mark.
The pair’s surge was stopped by the upper trend line of a junior channel pattern just below the 1.20 mark. The event has resulted in the rates decline that on Friday morning had declined below two resistance levels near the 1.1980 level.
In regards to the near future, the pair was expected to make another attempt to pass the dominant support line below the 1.1940 mark.
EUR/USD was driven by downside risks on Monday, as a move above the 1.2140 mark was restricted by the 55-hour SMA and the 50.00% Fibonacci retracement. As a result, bears pushed the rate down to 1.2070. The pair, however, halted at this four-month low reached on Friday, thus pointing to a possible change in sentiment.
A massive fall is not expected to occur in this session. The daily low is should be the same as yesterday—the weekly S1 and the 61.80% Fibo retracement near 1.2035. It is more likely the Euro tries to push higher; however, some important resistance levels, including the 55– and 100-hour SMAs and the weekly PP, still need to be surpassed to allow further advance.
These levels might hinder the pair for some hours, but the general direction should nevertheless remain north.