EUR/USD pair is trading around 1.0703 within an uptrend channel but showing signs of exhaustion since it reached 4/8 Murray which represents a strong barrier for the euro. In turn, above this level, the price is located at 200 EMA which also represents strong resistance.
Last week, the euro attempted to break this resistance area around 1.0750 on several occasions without success. It is currently consolidating below this area and we see a strong rejection which puts downward pressure on the euro.
In the next few hours, the euro could bounce within the uptrend channel and could reach 4/8 Murray and the 200 EMA located at 1.0751. If this zone turns out to be strong again, it will be seen as a signal to sell with targets at 3/8 Murray located at 1.0681 and 2/8 Murray located at 1.0620.
Since April 26, the eagle indicator is giving an overbought signal. We believe that before the euro resumes its bullish cycle, a strong technical correction could occur with the target at 2/8 Murray.
The market sentiment report shows that there are 54.36% of traders who are buying the euro which means that the EUR/USD pair could be consolidating in the coming days, but a fall below the psychological level of 1.07 could cancel the bullish outlook.
