Technical indicators are generally neutral, thus pointing to a possible period of consolidation. Given that the Euro managed to breach the 55-hour , it is likely that traders see the strengthening of the sentiment within this session and even beyond. The dashed line on the chart represents a three-week trend-line.
A breakout of this line and the 100-hour and the weekly PP circa 1.2390 should confirm the aforementioned scenario.
As previously expected, the notable resistance of the 55-hour SMA and the monthly R3 circa 1.24 stopped any attempts for the common European currency to strengthen against the Greenback within the last session.
Thus, the rate pushed lower and breached the three-week upward-sloping trend-line. It did return near the given line late on Monday, but failed to gain enough bullish momentum to return above the 1.24 mark.
It is likely that the pressure of the 55– and 100-hour SMAs and the weekly PP in this area results in a slight movement south towards the 200-hour SMA. The pair should remain between these moving averages until some fundamental events cause a breakout.
The general tendency, however, should nevertheless be southwards.
EUR/USD spent the Tuesday morning in between the bounds of the 100– and 200-hour SMAs. A subsequent surge apparent mid-session allowed for a breakout of the former, the 55-hour moving average, the weekly PP and the monthly S2 in the 1.2400/45 area.
At that point, the Euro lost its upside momentum and thus remained fluctuating within this territory. This trading day might mark another surge, as shown by technical indicators. This scenario is rather realistic, considering that the southern side is now protected by several notable barriers; meanwhile, the nearest resistance is formed by the 2016/2017 high at 1.2506.
On the other hand, the pair has lost momentum up near the monthly S2. This factor might likewise be an early indication of a fall that should halt at the 200-hour SMA circa 1.2350.