EUR/USD fails to break through 200-hour SMA
EUR/USD fails to break through 200-hour SMA
As it was projected yesterday, bulls did not succeed to push the Euro through second combined resistance barrier formed by the weekly S1 together with the 100- and 200-hour SMAs. Accordingly, the pair made a rebound and started moving back to the monthly PP. From daily perspective bears are still expected to keep their dominance. However, on hourly chart it seems that without an additional impulse the currency rate might fail to slip below the 1.1917 mark, thus extending horizontal movement for another day. As regards an allocation of pending orders in 50-pip range, then more than 60% of them are set to sell. In the meantime, an aggregate of various technical indicators supports possibility of another rebound, suggesting that tomorrow the pair should resume an upwards movement.
As it was projected yesterday, bulls did not succeed to push the Euro through second combined resistance barrier formed by the weekly S1 together with the 100- and 200-hour SMAs. Accordingly, the pair made a rebound and started moving back to the monthly PP. From daily perspective bears are still expected to keep their dominance. However, on hourly chart it seems that without an additional impulse the currency rate might fail to slip below the 1.1917 mark, thus extending horizontal movement for another day. As regards an allocation of pending orders in 50-pip range, then more than 60% of them are set to sell. In the meantime, an aggregate of various technical indicators supports possibility of another rebound, suggesting that tomorrow the pair should resume an upwards movement.
Due to release of the minutes of the European Central Bank’s December meeting the common European currency appreciated against the buck by 0.87% just in couple of hours and reached the weekly PP at 1.2040. In result of this surge, the pair has formed little ascending channel, which presupposes continuation of the upward movement at least until publication of information on the American inflation and retail sales. These events are expected to cause notable volatility in the markets.
However, even in case the data misses expectations the rate is unlikely to break through the two-year high located at the 1.2093 level. From this perspective, the bearish movement towards the monthly PP and the bottom trend-line of a two-month long ascending channel is still considered to be the most likely scenario in the medium term.