On Monday, the EUR/USD currency pair dropped to the lower line of the medium-term descending channel at 1.1730. During today’s morning, the pair pierced the lower channel line.
From a theoretical point of view, it is likely that a reversal north could occur, and the exchange rate could target the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 1.1810/1.1835 range.
However, note that the rate could remain pressured by the monthly S1 at 1.1767. Thus, a breakout south could occur, and the pair could target the weekly S2 located at the 1.1664 mark.