Given lack of fundamentals, the EUR/USD exchange rate showed no changes to its price level on Thursday. The pair was restricted by the monthly S1 from above, while support was set by the 100-hour SMA and the weekly S2 at 1.1582 and 1.1540, respectively. This slight movement down sent the pair testing the junior channel early this morning.
Technical indicators on the 4H chart demonstrate that the pair is more likely to edge lower today, but traders still need to wait for a confirmation—a southern breakout from the 1.1540 territory—to see a decline. Today’s downside target is the 200-hour SMA and the monthly S2 circa 1.1470.
In case this expected breakout south does not occur, the rate should target the upper junior channel line and the monthly PP at the 1.1650 level.
