EUR/USD Trades Above 1.2140

On Monday, the EUR/USD currency pair was trading sideways in the 1.2140 area.

It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs near 1.2130. Thus, some upside potential could prevail in the market in the short run. Note that the rate could face the resistance level—the weekly R1 at 1.2175.

If the predetermined resistance level holds, the currency pair could bounce off and decline to the weekly PP at 1.2097. Otherwise, the pair could target the psychological level at 1.2200 within the following trading session.