On Tuesday, the EUR/USD currency pair dropped to the support level formed by the 200-hour SMA and the weekly PP circa 1.0950. During today’s morning, the pair raised to the 1.0980 mark.
Note that the exchange rate was trading near the upper boundary of the short-term descending channel at 1.0990. Thus, it is likely that a reversal south could occur in the nearest future, and the rate could target the lower channel line located circa 1.0940.
Otherwise, the pair could gain support of the 55– and 100-hour SMAs, currently located circa 1.0970. In this case the Euro could continue to extend gains against the Greenback. Important level to look out for is the psychological level at 1.1000.
