EUR/USD analysis: Broke upper channel line

Dukascopy Bank Team Dukascopy Bank SA

EUR/USD

On Wednesday, the EUR/USD currency pair tested the upper boundary of the medium-term descending channel. During today's morning, the pair broke the given level.

Note that the exchange rate is supported by the 55-hour SMA near 1.0870. Thus, some upside potential could prevail in the market. However, note that the rate would have to surpass the resistance cluster formed by the Fibo 23.60%, the weekly PP and the 200-hour SMAs in the 1.0886/1.0910.

If the given resistance holds, it is likely that a reversal south could occur in the nearest future. Note that the pair could gain support from the 100-hour SMA near 1.10840. If the given support holds, the rate could consolidate in the short term.

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Dukascopy Bank Team

Dukascopy Bank SA

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