On Thursday, the EUR/USD currency pair declined to the support provided by the 100-hour SMA near 1.1380. During today’s morning, the pair was testing the given support.
Given that the exchange rate is pressured by the 55-hour SMA and the monthly R1 at 1.1400, it is likely that some downside potential could prevail in the market. In this case the rate could target the lower line of the short-term ascending channel circa 1.1320.
However, if the predetermined support holds, it is likely that some upside potential could prevail. Meanwhile, if the pair fails to exceed the weekly R2 at 1.1432, it is likely that the Euro could consolidate against the US Dollar in the short run.
