On Tuesday, the EUR/USD currency pair breached the short-term ascending channel south and dropped to 1.1740.
Given that the exchange rate is pressured by the weekly S1 at 1.1748, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the Fibo 61.80%, is located at 1.1707.
In the meantime, it is unlikely that bulls could prevail in the market, and the currency pair could exceed the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.1770/1.1790 range.
