On Tuesday, the EUR/USD currency pair revealed a short-term ascending channel. During today’s morning, the pair was testing the support formed by the 55– and 100-hour SMAs near 1.0830.
Note that the exchange rate is pressured by the 200-hour SMA and the weekly PP near 1.0860. Thus, some downside potential could prevail in the market, and the rate could re-test the lower channel line located in the 1.0800 area.
However, if the given support holds, it is likely that the Euro could consolidate against the US Dollar within the following trading session.
Also, it is unlikely that bulls could prevail in the market, and the currency pair could breach the given channel north due to the resistance level—the Fibo 23.60% at 1.0886.
