EUR/USD is trading around 1.0832, within the downtrend channel formed on the H1 chart, and around the 21 SMA. We can see that the euro is above the 200 EMA. It means that there could be a sharp break of this channel and EUR/USD could continue its rise and could reach 5/8 Murray located at 1.0894.
Should the euro consolidate above 1.0832, it will be seen as an opportunity to buy. On the contrary, if the euro falls below the top of the downtrend channel, we could expect EUR/USD to reach 1.0817 and 1.0803.
A close below the 200 EMA on the H1 chart could enable a fall towards the bottom of the downtrend channel located at 1.0750.
The eagle indicator is giving a slightly positive signal but it will only serve for the bears to resume selling. A strong bullish move in the euro is likely to occur in the coming days. Hence, EUR/USD could reach 1.09 and even the psychological level of 1.10.
The short-term outlook could be negative for the euro if it continues to trade below 1.0864. This is the pivot point and there is strong bearish pressure. If the instrument settles below, this will allow us to sell below this area.
