EUR/USD was trading in a short-term ascending channel for several sessions. This strong upside momentum, however, allayed significantly on Wednesday when the Euro approached the resistance of the monthly PP. The pair has since been trading sideways for the second consecutive session.
As apparent on the chart, it has not yet managed to reach the upper boundary of a six-week channel down. Thus, it is likely that the current period of consolidation is followed by a surge up to the 1.2470 mark during the remaining part of this week.
The Euro could remain stranded between the 55-hour SMA and the monthly R1 for several hours until upward pressure prevails in the market. ECB fundamentals, however, might introduce some changes to this scenario mid-session.
