After a more thorough analysis, a short term descending channel was discovered on the hourly chart for the EUR/USD currency pair. In accordance with the pattern, the rate should pass the support of the weekly and monthly PP at 1.1348 and 1.1331. However, the currency exchange rate is set to have additional support from the 200-hour SMA, which on Wednesday morning was located at the 1.1320 mark. Meanwhile, as it was expected on Tuesday, the 55-hour SMA has begun to provide resistance to the currency pair near the 1.1370 mark. It is highly likely that the pair finds support at the pivot point at 1.1348 while making attempts to break the resistance of the 55-hour SMA. As a result, a small scale descending triangle might form, the breakout of which should reveal the short-term direction of the pair.
