Early in the American selection, the EUR/USD pair is trading around 1.0888 within a downtrend channel formed on the H4 chart, below 3/8 Murray, and below the 21 SMA showing signs of exhaustion.
After several attempts, the euro could not overcome the 1.0940 barrier. EUR/USD is now making a technical correction. It will likely continue to fall in the coming days. On the H4 chart, we can see a break of the uptrend channel forming since June 25 and could reach the 200 EMA located at 1.0816.
If the euro consolidates above 1.0925 (3/8 Murray), the bullish cycle could resume and reach 4/8 Murray located at 1.0986 and even the psychological level of 1.1000.
On the contrary, we believe the euro could fall below the 21 SMA in the next few hours and reach 1.0803 and even 8/8 of Murray located at 1.0742. Therefore, we will look for opportunities to sell.
