The Eurozone single currency bounced off the 50% Fibonacci retracement level at 121.70 on Wednesday. As a result, the currency pair appreciated about 85 base points during yesterday’s trading session.
The exchange rate is currently testing a resistance level formed by the weekly R2 at 122.88.
If the currency exchange rate breaks the weekly resistance level as mentioned earlier, a surge towards a swing high at 123.18 could occur.
On the other hand, if the weekly R2 holds, a retracement towards a support cluster formed by the 50– and 100-hour SMAs at 122.18 might be expected.
