On Monday, the EUR/USD currency pair raised to the weekly R1 at 1.1963. During today’s morning, the pair tested the upper line of the medium-term ascending channel at 1.1996.
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 target the support formed by the 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 1.1860 area.
In the meantime, note that the rate could gain support from the 55-hour moving average near 1.1920. Thus, it is likely that the Euro could consolidate against the US Dollar in the short run.
