New trading week the common European currency started with depreciation against the American Dollar.
The downward movement was partially driven by a one week-long inverse head and shoulders pattern and partially by a recent bounce off from the two-year high located at the 1.2093 level. However, today the plunge most probably will be stopped near the bottom trend-line of a medium scale ascending channel, which is additionally backed up by the updated weekly S1 at 1.1992. If a rebound occurs, the pair will resume the surge trying to hit combined resistance level formed by the weekly PP at 1.2040 and the 55- and 100-hour SMA.
