Upside risks prevailed during the first part of Monday with the Euro breaching the 55-hour SMA and an eight-week channel down. The pair subsequently edged higher but nevertheless fell short of the weekly R1 and the 23.60% Fibonacci retracement at 1.1760. The second part of the session was spent calmly, as the rate was trading in a narrow range between the aforementioned SMA and the 1.17 mark.
It is expected that the pair remains trading in the 1.1660/1.1750 range today. The southern barrier is set by the 55-period (4H) and the 100– and 200-hour SMAs, while the northern one—by the weekly R1 and the 100-period (4H) SMA.
It is likely that the 55-hour SMA guides the pair during the following hours prior to letting bears to lead the way later in the evening.
