On Tuesday, the EUR/USD currency pair declined to the lower boundary of the short-term ascending channel at 1.1200. During today’s morning, the pair reversed north from the given line.
From a theoretical point of view, it is expected, that the exchange rate could continue to go upwards. However, note, that the rate has to surpass the resistance level formed by the weekly and the monthly S1s located circa 1.1220.
If the given resistance holds, it is likely, that the pair could re-test the lower channel line. It is unlikely, that the rate could breach the given channel north due to the support of the Fibonacci 38.20% retracement at 1.1200.