The last trading days of 2018 was dominated by the bearish sentiment. After testing the combined resistance level of the 200-hour simple moving average and the upper boundary of a descending channel pattern at 127.07, the common European currency began to depreciate against the Japanese Yen and shot down to the 124.34 area.
As shown on the chart, the first part of Wednesday’s session was spent with a bearish momentum, the currency pair is currently trading near a support level formed by the weekly S1 and the bottom border of the descending channel pattern at 124.34.
If this decline continues, a breakout is likely to occur within this session.
