Early in the American session, the EUR/USD is trading around 1.0725, below the 200 EMA, and above the 21 SMA. According to the daily chart, the Euro is showing positive signals. The price is now facing strong resistance at 1.0730. In case the Euro breaks this zone and breaks above the 8/8 Murray, we could expect it to continue ascending and it could climb higher to +1/8 Murray located at 1.0864.
In case the US inflation data is positive for the US dollar, we could expect a strong move above 1.0730 and EUR/USD could break the top of the bullish channel and reach 1.08 and 1.0864. Conversely, the euro could fall and reach 7/8 Murray around 1.0620 and could even reach the bottom of the downtrend channel at 1.0590.
Since September 28th, the Euro has been trading within an uptrend channel and has been respecting the support and resistance. If the Euro reaches the top of the uptrend channel around 1.0790 in the coming hours and fails to break this zone, we could expect a technical correction towards the area of 1.0630.
The eagle indicator is giving a positive signal. So, the euro is likely to continue rising in the coming hours. For this, EUR/USD should consolidate above 1.0735. Then, it could gain momentum and the instrument could reach 1.0864.
In the short term, as long as the euro trades above 1.0630 (21 SMA), the outlook will remain positive,. Therefore any technical bounce around this area will be seen as a buying opportunity.
