On Friday, the EUR/USD currency pair reversed south from the upper line of the short-term ascending channel.
From a theoretical point of view, it is likely that the exchange rate could re-test the lower channel line located circa 1.1770. It is unlikely that a breakout south could occur, as the lower channel line is strengthened by the 200-hour SMA.
Meanwhile, note that the rate could gain support from the 55– and 100-hour SMAs, as well the weekly and monthly PPs in the 1.1775/1.1790 range. Thus, the pair could re-test the upper channel line in the short run.
