Descending Trend-Channel Favors EURUSD Downside

Since early November, the EURUSD kept observing descending trend-channel formation that favors the pair's downside. On Wednesday, the pair rose to 1.0630 mark but weaker that expected CPI reading pulled it back, indicating 1.0550 re-test, breaking which the channel support, near 1.0500 round figure mark becomes important for the pair traders.

On the upside, 1.0650-60, comprising channel resistance, becomes strong upside resistance for the pair, breaking which it can quickly rally to 1.0750-60 and then to 1.0800 important resistance level. Moreover, sustained trading above 1.0800 negates the near-term downside chances for the pair and can fuel it towards 1.0950-60 area.