Early in the American session, the euro is trading around 1.0845, above the 200 EMA, and above the 21 SMA. The instrument has been consolidating around this area for more than 15 days.
According to the daily chart, EUR/USD is trading within an uptrend channel formed since the beginning of February. The instrument is expected to extend its rise in the coming days only if the euro breaks and consolidates above 1.0864.
In case of a sharp break of 2/8 Murray and a consolidation above 1.0870, we could expect the euro to continue rising and EUR/USD could reach 3/8 Murray at 1.0925, 4/8 Murray at 1.0986. Finally, the instrument could climb to the psychological level of 1.10.
On the contrary, if the euro falls below the 200 EMA located at 1.0815 in the coming days, closes, and consolidates below this area on the daily chart, we could expect a strong fall with targets at 1.0742 and 1.0684.
Our outlook remains bullish for the coming days and we could buy the euro if it consolidates above the 200 EMA located at 1.0815 with the target at 1.10.
