The common European currency continued to trade against the US Dollar in the descending channel pattern, which formed as a result of the pair bouncing off the resistance of the long term pattern’s upper trend line at the start of May. During the middle of Monday’s trading session the currency exchange rate encountered the resistance of the upper trend line of the descending channel and the 100-hour SMA. As a result a decline began, which on Tuesday morning had reached the support of the 38.20% Fibonacci retracement level at the 1.1188 level. Due to the fact that the retracement level has been already pierced twice, it can be assumed that the support of the Fibo will be passed by the end of the day.
