The common European currency started the week on a weak note against the Greenback, as it fell down to a fresh 2018 low at 1.1725.
This decline was stopped by the 100.00% Fibonacci retracement which is drawn from December 2017 low and 2018 high at 1.1719 and 1.2555, respectively. Subsequently, bulls took the dominant hand and pushed the rate up to the 100-hour SMA and a channel line at 1.18.
The general tendency of the pair should remain northwards this week. Technical indicators, however, flash bearish signals for this session, suggesting that the 100-hour moving average might provide strong resistance for some time.
In case bears prevail, 1.1720 is unlikely to be breached. However, if the 1.18 mark is surpassed, the pair is expected to test the 200-hour SMA at 1.1850.
