EUR/USD analysis: Channel is broken

Dukascopy Bank Team Dukascopy Bank SA

EUR/USD

The release of the US Consumer Price Index on Tuesday at 12:30 GMT, caused a drop of the value of the USD. The EUR/USD rate surged and broke the upper trend line of the channel down pattern. By the middle of Wednesday's European trading hours, the pair had started to fluctuate near the 1.1830 mark.

If in the near term future, the EUR/USD pair surges, it would test the resistance of the 200-hour SMA and the weekly simple pivot point at 1.1836. Above these levels, the weekly R1 simple pivot point at 1.1869 could serve as a technical resistance.

On the other hand, the rate could decline. A potential decline most likely would look for support in the 55 and 100-hour simple moving averages at 1.1807 and 1.1815. Below these levels, the 1.1800 mark could provide support. It was spotted that this level provided support on Tuesday evening and Wednesday morning.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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