Downside risks prevailed in the market on Thursday. As a result, the common European currency broke both the short and the medium-term ascending channel pattern.
As for the near future, it is possible that the currency exchange rate makes a brief retracement towards the 50-hour simple moving average at 125.01 during the following trade session.
However, it is important to note that a resistance cluster formed by the combination of the 100– and 200-hour SMAs at 124.90 could hinder such movement.
Meanwhile, technical indicators suggest that the overall market sentiment could remain bearish.