Early in the American session, the EUR/USD pair is trading around 1.0797 with strong bullish momentum in light of the data published in the United States that came out negative for the US dollar.
The fundamental data encouraged the euro so that EUR/USD reached 1.0816, the level seen on June 13, but a technical correction could occur because the instrument is technically showing overbought signals.
EUR/USD has been trading within an upward trend channel formed since June 26. After covering the GAP that it left on early Monday, it opened today with an upward cycle. We are going to see the exhaustion of the bullish force soon since EUR/USD has strong resistance at 5/8 Murray and at the top of the uptrend channel.
A technical correction could occur in the next few hours which would be seen as an opportunity to sell below 1.0803, with targets at 1.0761 and 1.0742.
The eagle indicator reached an overbought zone. Therefore, we reckon that as the euro is trading below the daily high of 1.0815 in the next few hours, it will be seen as an opportunity to sell.
