Yesterday, the EUR/USD currency pair stepped lower to the weekly PP at the 1.1175 mark. During today’s morning, the pair declined to the lower boundary of the short-term ascending channel at 1.1160.
From a theoretical point of view, it is likely, that a reversal north could occur in the nearest future. A possible upside target is the range between the Fibonacci 38.20% retracement and the monthly PP, located at 1.1200 and 1.1217 respectively.
However, given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs located circa 1.1195, it is expected, that bears could prevail in the market, and the rate target the 1.1140 level.