On Wednesday, the EUR/USD currency pair declined to the lower boundary of the medium-term ascending channel at 1.1112. During today’s morning, the pair was testing the given channel.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future. In this case, the exchange rate could face resistance of the 55– and 100-hour SMAs, as well the monthly PP in the 1.1150 area.
However, if the given channel does not hold, a breakout south could occur in the nearest future. In this case the currency pair could target the psychological level at 1.1080.
