Early in the American session, the Euro (EUR/USD) is trading at 1.0665, below the 21 SMA, and above the 200 EMA. According to the 4-hour chart, we can see that the euro is trading within a bearish trend formed on November 1 and above 7/8 Murray which favors a bullish continuation.
A sharp break of the bearish channel and a consolidation above 1.0690 could accelerate the upward movement of the euro and it could reach 7/8 Murray at 1.0742 and even reach +1/8 Murray around 1.0864.
On the other hand, as long as the euro trades below the 21 SMA, any bounce could be seen as a signal to sell with targets 1.0636 and 1.0620.
According to the daily chart, the euro remains bullish as long as it consolidates above the psychological level of 1.05. Therefore, any pullback to the 6/8 Murray zone could be seen as a signal to resume buying.
