EUR/USD Bounced Off Resistance

Despite piercing the resistance of the 1.1940 the EUR/USD failed to reach the 1.1950 mark and started a decline. This attempt provided the opportunity to adjust the width of the resistance zone that surrounds the 1.1940 level.

By the middle of Tuesday’s European trading hours, the currency exchange rate had reached the support of the 1.1875/1.1885 zone. Near term future forecast scenarios were based upon whether or not the zone holds.

In the case of the 1.1875/1.1885 zone holding, the rate should recover. A possible recovery would test the resistance of the 55- hour simple moving average at 1.1910 and the 100 and 200-hour SMAs together with the weekly simple pivot point in the 1.1920/1.1930 zone. Afterwards, the 1.1935/1.1945 zone might be reached

On the other hand, a possible decline below the zone would look for support in the weekly S1 simple pivot point at 1.1856.