Early in the American session, EUR/USD is trading at about 1.0864 around +1/8 of Murray, above the 21 SMA, and inside the uptrend channel formed since October 30.
If the euro consolidates above 1.0870 in the next hours, it could reach the top of the uptrend channel around 1.0935. If this scenario occurs and the euro reaches this zone, it will be seen as a selling opportunity.
On the other hand, in case the euro falls below the 21 SMA located at 1.0840, we could expect a bearish move as part of a technical correction. So, EUR/USD could reach the bottom of the uptrend channel around 1.0760 and even 8/8 Murray at 1.0742.
The euro could trade between 1.0930 to 1.0760 in the coming days. Around this range zone, we could look for opportunities to buy or to sell.
With a sharp break of the uptrend channel and a daily close below 1.0742, the euro could initiate the bearish cycle and it could reach the 200 EMA at 1.0678 and even the psychological level of 1.0500.
Since November 14, the eagle indicator has been giving an overbought signal which signals a technical bounce. As long as EUR/USD trades below 1.0950, it could be seen as an opportunity to sell.
