After failing to surpass the resistance of the 55– and 100-hour simple moving averages, the common European currency went for another decline against the US Dollar on Monday. The pair, however, failed to fall below the psychological 1.19 mark, thus providing the second confirmation of a five-day descending channel.
As apparent on the chart, this pattern has altered the rate’s steep fall during the previous two weeks. This might point to a possible medium-term recovery starting later this week.
In order to edge higher today, the Euro has still to overcome the aforementioned SMAs near 1.96. Given that the Fed Chief Powell and the US President Trump are to speak today, the rate might push as high as the 1.2020/30 area, while a breakout from the weekly S1 at 1.1867 should result in a test of 1.1825.
As apparent on the chart, this pattern has altered the rate’s steep fall during the previous two weeks. This might point to a possible medium-term recovery starting later this week.
In order to edge higher today, the Euro has still to overcome the aforementioned SMAs near 1.96. Given that the Fed Chief Powell and the US President Trump are to speak today, the rate might push as high as the 1.2020/30 area, while a breakout from the weekly S1 at 1.1867 should result in a test of 1.1825.
Comment:
Following a slight period of weakness on Wednesday morning, the Euro picked up momentum against its American counterpart and reached the 55-hour SMA.
This line nevertheless continued to pressure the rate, thus guiding its movement during the second part of the day. By Thursday morning, the Euro had returned near the combined resistance of the weekly S1 and the 55-hour moving average.
Technical indicators are starting to recover both on the 1H and 4H time-frames, demonstrating that the expected medium-term appreciation might be under way.
The base scenario for this session favours a breakout from the 1.1880 area and a subsequent surge to the 100-hour SMA at 1.1910. This level should likewise surrender and allow for further advance towards 1.20.
Following a slight period of weakness on Wednesday morning, the Euro picked up momentum against its American counterpart and reached the 55-hour SMA.
This line nevertheless continued to pressure the rate, thus guiding its movement during the second part of the day. By Thursday morning, the Euro had returned near the combined resistance of the weekly S1 and the 55-hour moving average.
Technical indicators are starting to recover both on the 1H and 4H time-frames, demonstrating that the expected medium-term appreciation might be under way.
The base scenario for this session favours a breakout from the 1.1880 area and a subsequent surge to the 100-hour SMA at 1.1910. This level should likewise surrender and allow for further advance towards 1.20.
The common European currency was not able to surpass the strong resistance of the 55-hour SMA on Tuesday morning as a result of which bears saw an opportunity to push the rate lower. This fall was limited by the weekly S1, thus leaving the rate floating slightly above the 1.1850 mark this morning.
The Euro should return near the 55– and 100-hour moving averages during the following hours. The upper boundary of a five-day descending channel is likewise located in this area.
It is likely that pair lacks the necessary momentum in this session, thus remaining trading along the 55-hour SMA. The expected bullish reversal, however, should occur later this week.
Today’s upside potential is until the weekly S1 at 1.1950, while a fall should not surpass the 1.18 level.