At the end of last week, the EUR/USD currency pair tested the upper boundary of the short-term ascending channel at 1.1250 and reversed south.
From a theoretical point of view, the pair should target the lower channel line located in the 1.1200/1.1220 range. However, note, that the exchange rate has to surpass the support cluster formed by a combination of the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.1203/1.1223 range.
If the given support holds, it is expected, that the rate could trade sideways around the psychological level at 1.1240. If bulls prevail in the market, it is likely, that the pair could reach the 1.1250 level.
