The Euro was driven by upside risks on Monday. Even though the norhtern side was guarded by a strong resistance cluster formed by the 55– and 100-hour SMAs and the weekly and monthly PPs, the pair managed to gather enough momentum to push through this barrier and thus move away from the bottom boundary of a four-month channel up.
The same bullish momentum is likely to prevail during the following hours, as well. It is expected that gains are capped near the 1.24 mark where the upper boundary of a short-term channel down is located. Further upward movement is unlikely, given that this area is likewise reinforced by the 200-hour SMA.
In terms of support, a possible fall should be restricted by the 55– and 100-hour moving averages cica 1.2270.