EUR/USD is trading around 1.10710, above the 21 SMA, and within the uptrend channel forming since April 12. During the European session, the euro reached a high of 1.07388, the level that coincided with the top of the bullish trend channel and with the 4/8 Murray zone. Both levels represent strong resistance.
Since reaching the top of the bullish channel, EUR/USD lost ground. Since then, it has been bouncing above the SMA 21 located at 1.0584 and around 3/8 Murray which represents strong support.
In the next few hours, we could look for opportunities to buy the euro only if it trades above 1.0684 (21 SMA) with targets at 1.0735 and at the 200 EMA located at 1.0757.
In case the euro reaches the resistance level of 1.0760, it could be seen as an opportunity to sell as the eagle indicator has been giving an overbought signal since April 24. Thus, we could expect a technical correction to occur in the few next days.
Technically, the euro is within an uptrend channel. While trading within this channel, any technical correction will be seen as a signal to buy. On the contrary, a break below this channel could revive the bearish cycle and the instrument could reach the psychological level of 1.05.
