On Tuesday, the EUR/USD currency pair reversed south from the upper line of the medium-term ascending channel. During today’s morning, the pair was testing the support level formed by the weekly and monthly PPs, as well the 200-hour SMA near 1.1860.
If the given support holds, it is likely that a reversal north could occur in the nearest future. In this case the exchange rate could face the resistance provided by the 55-hour SMA near 1.1935.
Otherwise, it is likely that some downside potential could continue to prevail in the market, and the rate could re-test the lower channel line located circa 1.7880.
