On Wednesday, the EUR/USD currency pair dropped to the 1.1840 level. During today’s morning, the pair was testing the 200-hour SMA near 1.1830.
If the given moving average holds, it is likely that a reversal north could occur. In this case the exchange rate would have to surpass the resistance area formed by the 55– and 100-hour SMAs, as well the weekly R1 in the 1.1875/1.1901 range.
Otherwise, it is likely that some downside potential could continue to prevail in the market in the nearest future, and the currency pair could target the weekly S1 at 1.1748.
