On Thursday, the EUR/USD currency pair revealed a short-term ascending channel. During today’s morning, the pair reversed north from the upper channel line.
From a theoretical perspective, it is likely that some upside potential could prevail in the market. In this case the exchange rate could re-test the resistance level—the monthly R2 at 1.1385.
Meanwhile, note that the rate could remain under pressure of the 55– and 100-hour SMAs in the 1.1340 area. Thus, it is likely that the pair could trade along the lower channel line in the short term.
