The strong downside potential which has guided the EUR/USD exchange rate since mid-April remained dominant on Tuesday, as well. The Euro plunged 91 pips against its American counterpart during the first part of the day, while the evening and this morning introduced no changes to the pair’s positioning.
The aforementioned fall was stopped by a dashed short-term trend-line at 1.9920. Technical indicators are already pushing higher from historic lows, thus suggesting that the previously-expected recovery should finally occur today.
The closest resistance is set by the 61.80% Fibonacci retracement and the weekly S1 at 1.2035; however, the possibility of the pair appreciating until the 55– and 100-hour SMAs at 1.2090 should not likewise be excluded. Support is provided by the weekly S1 at 1.1950.
