On Monday, the EUR/USD currency pair declined to the support level formed by the 200-hour SMA at 1.1125. During today’s morning, the pair was testing the given support.
If the given moving average holds, it is likely that a reversal north could occur in the nearest future. However, note that the exchange rate would have to surpass the resistance cluster formed by the 55- and 100-hour SMAs, as well the weekly PP in the 1.1139/1.11520 area. A possible upside target is the 1.1165/1.1180 range.
If the given support level does not hold, it is likely that the Euro could continue to depreciate against the US Dollar within the following trading session. In this case, the currency pair could face support of the weekly S1 at the 1.1102 mark.
