Upside momentum prevailed in the market on Tuesday, as the Euro closed the day with a 64-pip gain against the US Dollar. Along the way, the 200-hour SMA, the weekly PP and the 23.60% Fibo were breached.
On Wednesday morning, the pair was testing the upper boundary of a three-week channel down and the 1.24 mark which had provided an unbreakable resistance last week.
Technical indicators point to a period of consolidation today, as their high positioning might start to weaken in the nearest time. Some minor upside potential, however, is still apparent. Thus, gains could be capped near the weekly R1 at 1.2417, while the pair is likely to be supported by the 200-hour SMA circa 1.2350.
In the meantime, US CPI data is likely to introduce volatility in the market.
