In line with expectations, the Euro continued to successfully recover against the Dollar until it met the first line of defence set up by the monthly S1 at 1.1658. Nevertheless, a pressure from the 55-hour SMA is likely to provoke the pair to make another attempt to break to the top. On the one hand, a combined resistance formed by the weekly PP at 1.1674 and the 100-day SMA represent too strong barrier to be so easily crossed. On the other hand, the exchange rate two days ago made a rebound from the bottom edge of a senior descending channel. From this perspective, the pair is expected to climb upstairs for some while. An additional impulse might be provided after today’s release of the Euro Zone’s inflation data.
