Downside risks continue to prevail with the EUR/USD exchange rate, thus pushing it lower for the third consecutive session. This short-term depreciation has sent the Euro to a new one-month low at 1.1560. This mark is likewise close to a one-year low located near 1.15.
Friday’s trading session shows that this weekly decline is starting to allay. This means that a recovery is expected either today or tomorrow. The Euro has to overcome the strong resistance of the 55-hour SMA near 1.16 to fully accelerate against the US Dollar. In this case upside potential is apparent until the weekly R1 at 1.17.
Given that this session is calm in terms of fundamental data releases, the pair may lack the necessary upside momentum to breach the given moving average. Thus, it could fluctuate in the 1.1510/1.1600 range today.
