Early in the European session, the EUR/USD pair is trading around 1.0536 and below the 21 SMA within a symmetrical triangle formed in early October.
The euro has been consolidating since September 26 above the psychological level of 1.0500. The movement of the Euro in recent days has been within a range between the zone of 3/8 Murray and 2/8 Murray.
Technically, according to the H4 chart, we can see that EUR/USD is overbought. For the signal to be recognized, we should wait for a break above 1.0570 to buy or a break below 2/8 Murray to sell.
In the next few hours, we expect the instrument to trade within the symmetrical triangle pattern, above 1.0500 and below 1.0570.
Strong resistance could find the euro around the 200 EMA located at 1.0632. It is a key level, that if defeated, could push the price to 4/8 Murray at 1.0742.
On the other hand, strong support is located at 1.0490 – 1.0470. Below this area, the euro could reach 1.0376 (1/8 Murray).
Our trading plan for the next few hours is to buy the euro above the 21 SMA, with targets at 1,0690 and 1,0638. The dollar index (USDX) is showing signs of exhaustion, which could support the euro in the coming days.
