The common European currency was trading along the 55– and 100-hour SMAs and a junior channel on Thursday morning. This movement sideways shifted south mid-session when a strong hourly surge pushed the rate below all three SMAs and the 23.60% Fibonacci retracement.
This bearish momentum subsequently allayed in response to the weekly PP and another channel line being located nearby.
Technical indicators are gradually moving towards the oversold territory. Given that there is still some slight downside potential and the Euro is facing a rather strong resistance cluster, traders might be reluctant to push above the 1.2360 mark.
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Therefore, the rate could either trade sideways in the 1.2360/00 range or surpass the latter and began falling down to 1.2280.