As previosuly expected, the 55-hour SMA at 1.24 was an unbreakable resistance for EUR/USD which allowed bears to resume dictating the market direction. The pair hindered slightly near the lower boundary of the two-month ascending channel and the 23.60% Fibo retracement located near 1.2345, but was nevertheless pushed down to the weekly S2 where it was trading on Thursday morning. Technical indicators are gradually recovering from their lows, thus pointing to a possible surge in this session. It is expected that the Euro tries to form a retracement from the breached channel circa 1.2350. This area, likewise reinforced by the 55-hour SMA, the 23.60% Fibo and the weekly S1, is likely to be the top for today. In case the weekly S2 is breached, losses should be limited at 1.2225.
