The Euro was trading along the 100-hour SMA on Friday, with the 200-hour moving average working as a strong support. Being stranded by these two barriers, the pair failed to gain momentum and thus ended the session with no change to its positioning.
The general tendency continues to be northwards; thus, a surge is likely to follow if the Euro surpasses the 55– and 100-hour SMAs at 1.2340. Technical indicators are likewise bullish for this session. A breakout is expected to occur during the second part of the day. The upside target is the weekly R1 at 1.24, while the senior channel is likewise located nearby.
In case the bearish sentiment prevails, the rate should breach the 200-hour SMA and a two-week channel up. As a result, the Euro should be sent towards the weekly S1 at 1.2260.
