At the end of last week, the EUR/USD currency pair tried to surpass the Fibo 38.20% at 1.2000. During Monday morning, the pair was testing the upper boundary of the short-term descending channel.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future, and the exchange rate could re-test the lower channel line near 1.1050.
However, if the given channel does not holds, it is likely that the currency pair could target the support level formed by the weekly S1 and the monthly PP and located in the 1.0950 area.
