The EUR/USD currency pair has broken the medium-term ascending channel and dropped below the 1.2200 mark.
It is likely that the exchange rate could gain support from the weekly S1 at 1.2162 and reverse north in the nearest future. In this case the rate could try to exceed the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.2245/1.2270 range.
However, if the predetermined support level does not hold, some downside potential could prevail in the market, and the currency pair could decline to the weekly S2 at 1.2099.
