EUR/USD Could Consolidate In Short Term

During Thursday morning hours, the EUR/USD currency pair has been testing the support level formed by the weekly S1 at 1.2089.

It is unlikely that some upside potential could prevail in the market due to the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2190/1.2140 range.

If the predetermined support level holds, the exchange rate could trade sideways in the short term. Otherwise, the rate could try to decline below the psychological level at 1.2060.