Minor upside risks dominated the market during the first part of Wednesday. The Euro was gradually appreciating against the US Dollar until the daily high was reached at 1.2466. The pair was afterwards pushed lower down to the combined support of the 55– and 100-hour SMAs near 1.2420 where it remained located early this morning.
This trading session is market by low volatility. Given that bulls have failed to push the rate higher for several hours, the Euro might want to resume its movement southwards within this session. However, traders should be aware that the aforementioned support area is unlikely to surrender easily.
Meanwhile, even if bulls take this opportunity to push the rate higher today, gains should not exceed the 2015/2017 high of 1.25.