One week ahead (02/20-02/24)

Ranging between the half 1.18′s and peaking to 1.1950 after breaking the key support level of 1.2 encouraged by the NFP release, the dollar continues to threaten the lower area below 1.18 still, sentiment mainly expressed on the longer term studies.
While both 1.2 and 1.1850 remain valid, we expect the last week’s one figure range to resume. Though, a test of 1.2 may as well trigger the Euro offers cited between 1.1950-1.1200.
Recovering a bit after the extended free fall, the daily momentum glows still the same negative flavor. Medium term resistances are formed by the 1.1950, key 1.2000 emerging higher and 1.2160.

Support is currently formed by 1.1900 and 1.1850. Potential falls below the said levels are expected to aim towards mid 1.17 while a longer term decline may reach the lows established last year in the 1.1650 zone.