EUR/USD Trades Below 1.2180

Yesterday, the EUR/USD currency pair reversed south from the psychological level at 1.2240.

It is likely that the exchange rate could be pushed down by the resistance area formed by the 55– and 100-hour SMAs, as well the weekly R1 in 1.2160/1.2186. Thus, the rate could target the weekly S1 at 1.2040.

Meanwhile, note that the currency pair could gain support from the weekly PP at 1.2105. Thus, the pair could reverse north and try to exceed the predetermined resistance in the short run.