On Wednesday, the EUR/USD currency pair reversed north from the Fibo 38.20% at 1.1200. During today’s morning, the pair pierced the upper line of a medium-term descending channel. From a theoretical perspective, it is likely that some upside potential could prevail in the market. In this case the exchange rate could face the resistance level formed by the weekly R1 at 1.1323.
If the given resistance holds, it is likely that a reversal south could occur. Meanwhile, it is unlikely that the rate could decline below the support formed by the weekly and monthly PPs, as well the 200-hour SMA near 1.1250.
