Yesterday, the EUR/USD currency pair tested the upper boundaries of the short-term and long-term descending channels at the 1.1293 mark. During Friday’s morning, the support level formed by the 55– and 100-hour SMAs, the monthly R1 and the weekly R2 at 1.1266.
From a theoretical perspective, it is expected, that the pair could go downside and target the support cluster formed by the Fibonacci 38.20% retracement, the weekly R1 and the 200-hour SMA in the 1.1200/1.1218 range.
However, if the given support level holds, it is expected, that the exchange rate could re-test the given channels. If the trends do not hold, a breakout north could occur in the short run.
