After bouncing off the lower boundary of this pattern last week, the pair has entered a minor period of consolidation towards the senior channel located near the 3.42 mark. It is apparent that the pair has been reluctant to edge higher during the last three trading sessions. This might suggest that a test of the senior channel could be followed by a decline, as supported by technical indicators on the weekly time-frame.
In case the channel line is breached to the upside, the pair is likely to find resistance near 3.44 prior to approaching the bottom triangle line. A possible downside target for the following two weeks could be the monthly S1 at 3.3450.