The euro is trading around 1.0907, within the downtrend channel forming on March 7, above the 200 EMA, and above 2/8 Murray.
Yesterday after the press conference of the Fed Chairman, the euro gained a strong upward movement, reaching the top of the downward trend channel but failing to break it. Now it makes us think that in the next few hours, a technical correction could occur and EUR/USD could consolidate around 1.0866.
We believe that in the next few hours, the euro could continue with the technical correction if EUR/USD consolidates below 3/8 Murray located at 1.0925. The instrument could fall and reach the 21 SMA around 1.0883 or around 1.0866. Both levels could serve as a point of support which could allow buying the euro, with the target at 1.0986.
The level that we should pay attention to is 2/8 Murray which represents a good key point. Below this zone, the euro could continue to be more bearish and the outlook could be negative with prospects of reaching 0/8 Murray at 1.0725.
The other level to pay attention to is the 1.0986 zone, where the pivot point of 4/8 Murray is located. Above this level, the euro could reach the psychological level of 1.10 and even 5/8 Murray at 1.1047. The outlook could remain positive for this area.
Our trading plan for the next few hours is to sell below 1.0940 and buy above 1.0866. The eagle indicator is giving a positive signal that supports our bullish strategy.
