After reaching a three-year high of 1.6427 early in February, the common European currency began trading in a new wave down. This movement has been bound in a descending channel but with a diminishing trading range.
Technical indicators demonstrate that the pair is likely to edge higher and approach the prevailing junior channel down during the following week. Some hindrance could be encountered near the combined resistance of the 55-, 100– and 200-period SMAs and the monthly PP circa 1.62.
By and large, the rate is expected to maintain its current trend south. A possible target for the following month is the 1.5950/1.5900 territory where the bottom boundary of another channel is located.