The pair’s trading range within this pattern has diminished, as it has failed to reach its bottom boundary for the past two weeks. This suggests that the Euro might be ready for a breakout.
In case this scenario occurs, the pair should target the upper boundary of the senior channel circa 4.22. There are some notable resistance levels along the way that could hinder the pair for some time, including, the 200-hour and the monthly PP at 4.1965 and 4.21, respectively.
On the other hand, the rate might still edge slightly lower down to a medium-term channel circa 4.17. A fall below the 4.1650 is not expected.