On Tuesday, the EUR/USD currency pair revealed a medium-term descending channel and re-tested the upper channel line. During today’s morning, the pair was trading along the given line.
From a theoretical point of view, it is likely that some downside potential could prevail in the market. In this case the exchange rate could decline to the 1.0800 level.
However, note that the currency pair is supported by the 55– and 100-hour SMAs near 1.0840. Thus, the pair could break the upper channel line. Note that the pair would have to surpass the resistance area formed by the Fibo 23.60%, the weekly PP and the 200-hour SMA in the 1.0886/1.0930 range.