On Friday, the EUR/USD currency pair breached the short-term channel south. During today’s morning, the pair was testing the support level—the monthly R1 at 1.1246.
If the given support holds, it is likely that some upside potential could occur in the short term. Meanwhile, note that the exchange rate could face the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in 1.1297/1.1320.
If the predetermined resistance holds, it is likely that a reversal south could occur, and the currency pair could target the Fibonacci 38.20% retracement at the 1.1200 mark.
