Early in the American session, the Euro (EUR/USD) is trading around 1.0941 within the downtrend channel forming since March 6th, and within the main uptrend channel forming since February 27th.
The euro is showing signs of exhaustion. EUR/USD is likely to continue with the technical correction in the coming hours and could reach 2/8 of Murray located at 1.0857.
If the euro breaks the bullish channel sharply in the next few hours and consolidates below 1.0930 (21 SMA), we could expect a bearish acceleration and the price could reach the bottom of the secondary bearish trend channel around 1.0885. The instrument could finally reach 200 EMA located at 1.0857.
EUR/USD could have a positive outlook in case it breaks and consolidates above 1.0955. Then, we could expect it to reach 4/8 Murray around 1.0986, the psychological level of 1.10 and finally, it could even reach 5/8 Murray at 1.1067.
Given that the eagle indicator is giving a negative signal, and the euro is overbought, our strategy will be to sell at the current price levels below 1.0950 with targets at 1.0925 and 1.0864.
