FxWirePro: EUR/USD heads to test resistance channel as dollar sags

Euro bulls are riding a weak dollar,

• The chart shows that the EUR/USD pair has been moving in a down-trending channel since the beginning of the year. Channel resistance has so far halted price rise thrice, while floor also supported the price three times.
• The last support came last week when EUR/USD bears tested the channel floor on dovish commentary from the European Central Bank (ECB).
• Since finding a floor around 1.118 area, the euro has moved higher by 130 pips and trading at 1.131 area.
• It is likely that the bulls are heading to test the channel resistance around 1.139 area.

Our calculations suggest that the EUR/USD pair might move above the channel resistance on positive news from Brexit, however, a move above the 1.15 area unlikely.