Fundamental news drove the common European currency higher on Wednesday, thus allowing it to recover from the ten-month low of 1.1525. This 130-pip surge resulted in a breakout of several resistance levels, including the 55– and 100-hour SMAs.
By Thursday morning, the pair had steadily approached the 200-hour SMA and the upper boundary of a seven-week channel circa 1.17. Given that this resistance area is likewise strengthened by the 55-period SMA on the 4H chart, the Euro might be reluctant to overcome this level on the first occasion. This mark, however, should eventually surrender and send the pair towards the 1.1950 territory.
In case no fundamentals shake the market today, a fall below the 55-hour SMA and the weekly S1 at 1.1590 is not expected.
