Downside risks prevailed in the market on Thursday, thus sending the common European currency to breached both the 50-, 100-, and 200-hour SMAs and the 50.00% Fibonacci retracement level.
The exchange rate tested the 61.80% Fibonacci level at 124.44 during the Asian session on Friday. It is likely that the currency pair keeps moving down towards the weekly pivot point at 124.07.
In the meantime, it is expected that the currency exchange rate makes a brief retracement towards a resistance level formed by the combination of the 50– and 100-hour SMAs at 124.92 within this session.
