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EUR/USD Test Monthly S1

On Wednesday, the EUR/USD currency pair declined to the monthly S1 at 1.0776. During today’s morning, the pair was testing the given support.

Note that the exchange rate is pressured by the 55-hour SMA near 1.0830. Thus, some downside potential could prevail in the market. In this case the rate could target the weekly S2 and the lower line of a falling wedge pattern in the 1.0720 area.

However, if the given support level holds, it is likely that the Euro could consolidate against the US Dollar within the following trading session.

It is unlikely that bulls could prevail in the market, and the currency pair could exceed the resistance formed by the 100– and 200-hour SMAs, as well the Fibo 23.60% in the 1.0880.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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