EUR/USD Tests Weekly S1

During Monday morning hours, the EUR/USD currency pair dropped to the support level—the weekly S1 at 1.2070.

If the predetermined support level holds, it is likely that the exchange rate could reverse north in the nearest future. In this case the rate could try to exceed the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2120/1.2136 range.

Otherwise, the European Common Currency could continue to trade downwards against the US Dollar within the following trading session. The currency pair could decline to the 1.2020/1.2040 range