On Tuesday, the EUR/USD currency pair reversed south from the upper line of the short-term ascending channel. During today’s morning, the pair reversed north from the lower channel line.
From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the exchange rate could re-test the upper channel boundary in the 1.1800/1.1820 area.
In the meantime, note that the rate could face the resistance provided by the 55-hour SMA near 1.1765. Thus, a breakout south could occur, and the pair could decline to the support formed by the weekly PP, the Fibo 61.80% and the 200-hour SMA in the 1.1710 area.
