Early in the American session, the euro is trading around 1.0858, above the 21 SMA, and within the uptrend channel forming on the H4 chart.
The euro could continue rising if it consolidates around 1.0836 in the next few hours or makes a technical bounce at the bottom of the uptrend channel around 1.0825.
The outlook could remain positive for the euro if it consolidates above 1.0830 in the coming hours. Then, it could reach resistance levels around the May 15 high located at 1.0894 and could even reach 1.0956.
On the contrary, if the euro falls below 1.0830 and makes a sharp break below the uptrend channel forming since the beginning of May, we could expect a change in the euro trend. This scenario should be confirmed when the euro consolidates below the 200 EMA located at 1.0792.
The eagle indicator shows a positive signal for the euro. So, we believe with any technical rebound as long as EUR/USD trades above 1.0820, the outlook will remain bullish in the next few hours. Hence, we will look for opportunities to buy with the target at 1.0956.
