Upside risks continue to dominate the EUR/USD exchange rate. The pair lingered near the upper boundary of a medium-term channel early on Tuesday prior to breaching this pattern to the upside and surging up to the 1.2365 mark.
Given that technical indicators are located near their highs for the second consecutive session, it is possible that the bearish pressure eventually manages to take over the pair and thus initiate a short-term correction south.
It seems that the 23.60% Fibonacci retracement at 1.2360 could be a rather probable point of reversal, as the Euro remained near this line during the Asian session.
In terms of downside potential, the monthly PP and the 55-hour SMA at 1.2320 is the nearest southern target, while stronger support is the 100– and 200-hour SMAs near 1.23.
