As previously expected, the notable resistance of the 55-hour SMA and the monthly R3 circa 1.2436 stopped any attempts for the common European currency to strengthen against the Greenback within the last session. Thus, the rate pushed lower and breached the three-week upward-sloping trend-line. It did return near the given line late on Monday, but failed to gain enough bullish momentum to return above the 1.24 mark. It is likely that the pressure of the 55– and 100-hour SMAs and the weekly PP in this area results in a slight movement south towards the 200-hour SMA. The pair should remain between these moving averages until some fundamental events cause a breakout. The general tendency, however, should nevertheless be southwards.
