EUR/USD Consolidates in Ascending Channel, Tests Key Resistance at 1.0860

EUR/USD maintains a tight trading range within an ascending channel pattern, currently testing resistance near 1.0860 as technical indicators suggest potential breakout conditions. The pair has been confined to a 40-pip range over the past 48 hours, with support firmly established at 1.0820 along the channel's lower boundary. Trading volumes remain subdued ahead of key economic releases, including Wednesday's Eurozone inflation data and Friday's US employment report. The ascending channel formation, in place since mid-October, projects a potential move toward 1.0900 if resistance breaks convincingly. RSI indicators hover near 58, suggesting room for further upside without entering overbought territory. Failure to breach current resistance could see the pair retreat to test channel support at 1.0820, with a break below potentially signaling a trend reversal. Traders are advised to watch for volume confirmation on any directional move.