Morning outlook - EUR/USD slips to weekly PP at 1.1999
- On Friday, the currency exchange rate acted in accordance with one of the scenarios, which suggested that as soon as markets will calm down the buck is going to try restoring some lost positions.
- Indeed, after failing to jump above the monthly R1 at 1.2099 the pair switched a direction and ended the week near the combined support level set up by the 55-hour SMA and the updated weekly PP at 1.1999.
- It seems that the turnaround was partially attributed to clash with the upper boundary of a medium-term rising wedge, which can be clearly seen on a daily timeframe.
- From this larger perspective the rate is expected to continue to gradually slip to the bottom.
- However, in the short run these attempts most likely will be neutralized by the 100- and 200-hour SMAs.
Comment:
Daily chart: a rebound from wedge or small correction before further surge?
Trade active:
The common European currency continued its decline against the US Dollar, as it
was expected on Monday.
On Tuesday morning the pair had already rebounded against the combined support of the medium pattern and the 200-hour SMA near the 1.1940 mark. Due to that reason a surge was expected.
However, the rebound is most likely going to be hindered by the 100-hour SMA
until the pair reaches the weekly PP at 1.1999, which will be supported by the 55-
hour SMA. Most likely that combined resistance will force the rate to continue the
decline.
was expected on Monday.
On Tuesday morning the pair had already rebounded against the combined support of the medium pattern and the 200-hour SMA near the 1.1940 mark. Due to that reason a surge was expected.
However, the rebound is most likely going to be hindered by the 100-hour SMA
until the pair reaches the weekly PP at 1.1999, which will be supported by the 55-
hour SMA. Most likely that combined resistance will force the rate to continue the
decline.
