The single European currency tested a resistance cluster formed by the weekly and the monthly PPs at 124.95 during the previous trading session. After hitting the resistance cluster, the currency pair began to depreciate. At the end of yesterday’s trading session, the exchange rate has lost about 0.58% of its value.
Everything being equal, it is likely that the currency exchange rate will edge lower within this session. The potential target for the pair will be at the lower boundary of a medium-term descending channel pattern at 123.68.
However, the pair could aim for a re-test of the resistance cluster as mentioned earlier.
