On Wednesday, the EUR/USD currency pair re-tested the upper boundary of the short-term ascending channel. During today’s morning, the pair was testing the lower channel line near 1.0800.
From a theoretical point of view, it is likely that a reversal north could occur in the nearest future, and the exchange rate could target the upper channel line near 1.0885.
Note that the rate would have to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.0830/1.0862 range. If the given resistance holds, it is likely that the pair could trade along the lower channel line
