The EUR/USD pair is testing the MA 200 H1

Yesterday, the EUR/USD pair rose sharply from 1.0295 to 1.0440, but during the American trading it declined slightly and closed the session near the price of 1.0395. Today, the pair started trading in the range of, 10375-95, near the closing level of yesterday's session. On the hourly chart, EUR/USD is testing the MA (200) H1 (1.0375) moving average line and remains below MA (200) H4 (1.0470) on the four-hour chart. Based on the above, it is probably worth sticking to the southern direction in trading and until the pair gains a foothold above the MA 200 H1, it is necessary to look for entry points to sell at the end of the correction.

Resistance levels are at: 1.0440-60, 1.0515, 1.0540

Support levels are at: 1.0340, 1.0275, 1.0225

The main scenario for the pair's progress suggests a breakout of support at 1.0340 (Dec 18-20 and 31 lows), a decline to 1.0275 (low of the American session on Jan 3) and then, perhaps, to 1.0225 (Jan 2 low

An alternative scenario implies a breakout of the 1.0440-60 area (Dec 30 and Jan 6 highs) and there may be an increase to 1.0515-40 (Dec 11-18 highs).