During the end of the previous week, the EUR/USD currency pair tried to surpass the 1.1220 level. During Monday’s morning, the pair dropped to the support level—the monthly PP at 1.1169.
Note, that the exchange rate is trading near the lower boundary of the short-term descending channel. Thus, it is expected, that a reversal north could occur in the nearest future. In this case the rate has to surpass the resistance level formed by the 55– and 100-hour SMAs, as well the Fibo 38.20% at 1.1200.
It is unlikely, that a breakout south from the given trend could occur in the short term due to the support of the 200-hour SMA, currently located at 1.1160. However, if the given support does not hold, the pair could target the weekly S1 at 1.1122.
