Yesterday, the EUR/USD currency pair tested the support level formed by the weekly S1 at 1.0979. During Tuesday morning, the pair was trading near the 1.1000 mark. If the given support level holds, it is likely that the Euro could appreciate against the US Dollar in the short term. However, note that the exchange rate has to surpass the resistance cluster formed by the 55-, 100- and 200-hour SMAs, as well the weekly PP in the 1.1012/1.1038 range.
On the other hand, the Euro could continue to trade sideways against the Greenback within the following trading session. Also, it is unlikely that bears could prevail in the market, and the rate could decline lower than 1.0960 due to the lower boundary of the medium-term ascending channel.
