Yesterday, the EUR/USD currency pair was volatile, and a breakout north from the falling wedge pattern occurred. During Friday morning, the pair was testing the weekly R1 at 1.1103.
If the given resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case it is unlikely that the exchange rate could drop lower than the 1.1015/1.1039 range due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP.
If the given resistance does not hold, it is likely that the European Common Currency could appreciate against the US Dollar in the short term. Note that the nearest resistance level, formed by the weekly R2 and the monthly R1, is located at 1.1174.
