Early in the American session, the EUR/USD pair is trading at 1.0850, below the 2/8 Murray, and above the 200 EMA with a bullish bias but showing signs of exhaustion.
In the H4 graph, we can see that the euro is trading within a bullish trend channel forming since February 13.
During the European session, we saw a break above the top of the uptrend channel, but the euro failed to consolidate above 1.0864. Meanwhile, we observe a technical correction.
If the euro trades below 1.0864 in the next few hours, a technical correction is likely to occur with targets at 1.0816 (200 EMA) and 1.0803.
The eagle indicator has reached the extremely overbought zone. So, a technical correction is imminent in the coming hours.
A key level for the euro is the 1/8 Murray zone around 1.0803. If the euro rebounds around this area, it could resume its bullish cycle with targets at 1.0925 and the psychological level of 1.10.
On the contrary, if the euro breaks the 1.0803 level, consolidates below this area, and also breaks the uptrend channel forming since February 13, a bearish acceleration could occur. Hence, the instrument could reach 1.0700 and could even fall below this area.
