The Euro remained stable against the US Dollar during the previous session.
The expected decline was restricted by a massive support cluster in the 1.2250/23 area. However, the pair has likewise failed to overcome the 1.2268 mark, thus confirming the upper boundary of a one-week descending channel. It showed low volatility early today, as the 55– and 100-hour SMAs limited any attempts to edge lower.
The Euro’s movement during the previous sessions demonstrates that bears are restlessly trying to push the rate below this massive support. Thus, it is more likely that the pair remains tended southwards in this session.
Given the strength of this support, the rate might continue its movement sideways. Upside target for today should be the weekly R1 at 1.2303.
The expected decline was restricted by a massive support cluster in the 1.2250/23 area. However, the pair has likewise failed to overcome the 1.2268 mark, thus confirming the upper boundary of a one-week descending channel. It showed low volatility early today, as the 55– and 100-hour SMAs limited any attempts to edge lower.
The Euro’s movement during the previous sessions demonstrates that bears are restlessly trying to push the rate below this massive support. Thus, it is more likely that the pair remains tended southwards in this session.
Given the strength of this support, the rate might continue its movement sideways. Upside target for today should be the weekly R1 at 1.2303.
EUR/USD was trading in bullish market on Tuesday. Following a slight period of decline early in the session, the common European currency reversed from the combined support of the 55– and 100-hour SMAs and the weekly circa 1.2235 and surged 90 pips within the following hours. As a result, the pair had reached the 1.2315 mark at the time of this analysis.
The aforementioned support area restricted the pair from initiating a new wave down; thus, the descending channel which was formed on January 14 was breached to the upside.
It is still likely that the pair edges higher for several hours until the upper boundary of the junior channel is reached circa 1.2360. The Euro should subsequently make a correction south towards 1.2250.