On Tuesday, the EUR/USD currency pair broke the falling wedge pattern. Also, the pair has revealed a medium-term descending channel.

From a theoretical point of view, it is likely that the exchange rate could trade downwards within the predetermined channel in the short term. A possible downside target is the 1.2060/1.2080 range.

Meanwhile, note that the currency pair could gain support from the 55– and 100-hour moving averages in the 1.2100 area. Thus, the pair could reverse north and re-test the upper channel line located in the 1.2160/1.2140 area.