EUR/USD is trading around 1.0864, showing signs of exhaustion. The instrument has found strong resistance around 6/8 Murray. On the H4 chart, the euro was generating a strong bullish signal during the European session, but a technical correction is now unfolding because it was rejected from the top of the bearish channel around 1.0883.
If the euro falls below 1.0864 in the next few hours, it will be seen as an opportunity to sell, with targets in the uptrend channel at around 1.0828.
A sharp break of the uptrend channel forming since April 29 and a consolidation below 1.0820 will be seen as a trend change. So, the euro could quickly reach the 200 EMA and even the 4/8 Murray located at 1.0742.
The eagle indicator has been in an overbought zone since May 13. We believe that for the euro to resume its bullish cycle, there should be a strong technical correction and EUR/USD could even reach support levels of 1.0750. Once it gets relief, the instrument could resume its upward trend.
If the euro finds a good bottom around 1.0725, it will be seen as an opportunity to buy with targets at 1.0925 (7/8 Murray) and at the psychological level of 1.10.
