On Friday, the EUR/USD currency pair re-tested the psychological level at 1.1220. During today’s morning, the pair breached the medium-term descending channel north.
It is likely that the exchange rate could face the resistance level formed by the weekly R1 at 1.1308. Thus, it is likely that some downside potential could prevail. Meanwhile, it is unlikely that the rate could decline below the support formed by the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.1250 area.
Otherwise, it is likely that some upside potential could continue to prevail in the market. In this case note that the nearest possible resistance level—the weekly R2, is located at the 1.1364 mark.
