EUR/USD Analysis: Tested monthly R1

EUR/USD

On Monday, the EUR/USD currency pair tested the resistance level—the monthly R1 at 1.1157. During today’s morning, the pair was testing the weekly R1 at 1.1120.

It is likely that the exchange rate could gain support from the 55-hour SMA near 1.1080 and trade upwards in the short term. In this case the rate would have to surpass the Fibo 38.20%, as well the weekly R2 at 1.1210.

However, if the monthly R1 holds, it is likely that the Euro could trade sideways against the US Dollar in the short run. Also, it is unlikely that bears could prevail, and the pair could decline below the 100-hour SMA near 1.1000.

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