The common European currency remained stable against the Greenback on Friday, as it was confined within the bounds of the 32.20% Fibo retracement and the monthly PP at 1.2225 and 1.2289, respectively.
The pair breaching the 55-hour SMA near 1.2250 could point to a soon period of appreciation. This is likewise supported by other indications, such as the slight two-day consolidation after a week of decline, as well as the Euro’s reversal from the 38.20% Fibo and the bottom boundary of a three-month channel up. Thus, it could be assumed that the rate will try to push up to the 23.60% retracement line at 1.2345, at least.
This scenario, however, could be hindered by the combined resistance of the weekly and monthly PPs and the 100-hour SMA in the 1.2290/1.2312 area.
