No significant changes were introduced to EUR/USD’s positioning on Monday, as it remained trading along the 55-hour SMA . The pair, however, provided the second confirmation of a three-day channel down (dashed lines). The bearish momentum took the upper hand early today, thus pushing the rate past the prevailing two-week channel up and below the 55– and 100-hour SMAs.
The pair is currently stranded between these lines and the 200-hour SMA. The same moving averages constrain the rate on the four-hour chart, as well. Thus, it is likely that large gains are limited today.
It is expected that the Euro remains tended south, setting the lower channel boundary and the 55– and 100-period (4H) SMAs near 1.17 as the daily low. In the meantime, gains should not exceed 1.19.
