Early in the American session, the Euro is trading around 1.0955 within a symmetrical triangle formed since November 20 and above the 21 SMA. However, a technical correction below 1.0931 is expected to occur. If the price breaks the uptrend channel, then it could fall towards the 200 EMA located at 1.0764.
In the coming hours during the US session, the consumer confidence data for November will be released. If this data is disappointing, it could cause a weakness in the dollar and give a strong bullish impulse to the euro. So, EUR/USD could reach the psychological level of 1.10.
However, if the data is positive for the US dollar, the euro is likely to reach the area of +1/8 Murray located at 1.0864 and could even reach the 200 EMA at 1.0764.
On the 4-hour chart, we can see that the EUR/USD pair keeps its uptrend channel intact. Therefore, in case a strong break below this channel around 1.0890 occurs, it could mean a change in the trend and the euro could return to 1.0740 and could even reach 7/8 Murray at 1.0620.
In view of the fact that the euro is showing overbought signs and for the euro to continue to rise, we should expect a sharp correction and then from there, buying could resume. Therefore, in the short term, as long as the EUR/USD trades below the psychological level of 1.10, there is an opportunity to sell with the target at 1.06.
