Due to the lack of outside pressure, Monday’s trading session was relatively calm for the EUR/USD exchange rate, as it remained fluctuating between the 55-hour SMA and a senior channel line. A breakout from this moving average is necessary to consider going long on the pair.
Given that technical indicators on the 1H and 4H time-frames are starting to show signs of a possible recovery, this confirmation is expected to occur in the nearest time. The most likely upside target during the following days is the 100– and 200-period (4H) SMAs near 1.1665.
Meanwhile, the Euro might be reluctant to move past the weekly S1 located at 1.1540, as this is the pair’s lowest position in a year. Thus, even if a surge does not occur today, losses should likewise be limited.
