On Friday, the EUR/USD currency pair reversed north from the lower boundary of the medium-term ascending channel at 1.1090. During today’s morning, the pair was testing the resistance provided by the 100-hour SMA at 1.1126.
From a theoretical point of view, it is likely that some upside potential could prevail in the market in the nearest future. However, note that the exchange rate would have to surpass the resistance cluster formed by the weekly and monthly PPs, as well the 200-hour SMA in the 1.1139/1.1156 area.
However, if the 100-hour SMA holds, it is likely that a reversal south could occur in the nearest future, and the currency pair could re-test the lower channel line. If the given channel does not hold, the pair could decline to the weekly S1 at 1.1072.
