Yesterday, the EUR/USD currency pair tried to surpass the 1.0940 level. Druing Wednesday morning, the pair reversed south.
Given that the exchange rate is pressured by the 55– and 100-hour SMAs, currently located circa 1.0920, it is likely that some downside potential could prevail in the market. In this case the rate could gain support from the weekly S1 and the Fibonacci 23.60% retracement at 1.0890.
On the other hand, the European Common Currency could trade sideways against the US Dollar in the short term, trying to surpass the given resistance. It is unlikely that bulls could prevail in the market, and the rate could exceed 1.0960 due to the resistance of the weekly and monthly PPs, as well the 200-hour SMAs.
