The common European currency recently stopped its short term decline against the Swiss Franc , as it found support in a medium term . However, the rate still should decline.
The reason for that is the fact that the currency rate has not met the lower of the most dominant pattern. It occurred due to the last recent rebound against a dominant pattern, which represents a large scale descent to the just mentioned most dominant support line.
In general, the situation has to be watched, as it develops, as the rate might be stagnating due to the expectations of the ECB rate announcement.
Due to that reason a review is being done and can be observed below.
The common European currency recently met with the support of a strong support cluster against the Swiss Franc. The encounters resulted in a rebound, which has passed the resistance of the 200-period SMA, which has begun to provide support.
However, additional gains are most likely going to be limited in the short term. The reason for that is the fact that near the 1.1480 mark a strong resistance cluster is located at. The cluster consists of the weekly and monthly pivot points and the 55 and 100-period simple moving averages.
Due to that reason it can be expected that the pair will retreat after encountering the just mentioned cluster.