Yesterday, the Euro depreciated against the US Dollar. During Tuesday morning, the EUR/USD pair reversed north from the support level formed by the weekly S1 and the Fibo 23.60% at 1.0886.
From the one hand, the currency pair could continue to extend gains in the short term. However, it is unlikely that the pair could exceed the 1.0920/1.0940 area due to the upper boundary of the medium-term descending channel.
From the other hand, the exchange rate could face resistance of the 55– and 100-hour moving averages, currently located at 1.0918 and 1.0918. Thus, the rate could consolidate in the short term.
