On Wednesday, the EUR/USD currency pair jumped to the resistance cluster formed by the weekly and monthly PPs, as well the 200-hour SMA in the 1.0951/1.0965 range.
During today’s morning, the exchange rate was testing the given resistance. If it holds, it is likely that a reversal south could occur in the nearest future. In this case, the rate could gain support of the 55– and 100-hour SMAs circa 1.0930. It is unlikely that the could drop lower than the Fibo 23.60% at 1.0886.
Otherwise, it is likely that the European Common Currency could continue to extend gains against the US Dollar in the short term. A possible upside target is the 1.0980/1.1000 range. Note the nearest resistance level—the weekly R1, is located at 1.1011.
