On Thursday, the EUR/USD currency pair broke the lower boundary of the short-term ascending channel. During today’s morning, the pair was testing the resistance formed by the 55-, 100– and 200-hour SMAs in the 1.0830 area.
If the given moving averages hold, it is likely that some downside potential could prevail in the market. Note that the exchange rate could gain support from the monthly S1 at 1.0776.
If the given support level holds, it is likely that the Euro could consolidate against the US Dollar in the short term. Otherwise, the currency pair could target the weekly S1 at 1.0747
