As apparent on the chart, two other patterns are also active—a channel up and a descending . Taking into account characteristics of these two patterns and technical indicators, it is likely that upside risks become dominant in the market, thus setting the Euro for a slight appreciation in the short term.
An immediate upside target could the weekly PP and the 200-hour circa 1.6950 or the weekly R1 at 1.7132. As a result, the rate would retrace from a previously-breached channel line.
In the medium-term, however, it is still expected that the downward pressure could take the upper hand and push the rate closer to the 1.67 area.