On Tuesday, the EUR/USD currency pair tried to surpass the resistance formed by the 100-hour SMA at 1.1020. During today’s morning, the pair was testing the support level – the 55-hour SMA at 1.0999.
Note that the exchange rate has revealed the descending channel pattern, and has already reversed south from its upper boundary. Thus, it is likely that some downside potential could prevail in the market. Important level to look out for is the weekly S1 at 1.0979.
However, if the 55-hour moving average holds, it is likely that the currency pair could breach the given channel north. In this case it is unlikely that the Euro could exceed the 1.1035 mark against the US Dollar due to the resistance level formed by the weekly PP and the 200-hour SMA.
