EUR/USD is trading around 1.1168 within the bullish trend channel forming since August 2 and showing a technical correction signal. During the European session, the euro reached a high of 1.1201 and since then we have been observing a correction. Thus, the instrument is likely to continue falling in the next hours until it reaches the 21 SMA at 1.1142. Finally, EUR/USD could reach 6/8 Murray at 1.1108.
If the euro continues its rise, we should expect a consolidation above 1.1170 on the H4 chart. Then, the next target to reach will be 1.1230 which matches Murray 8/8 and acts as a strong resistance.
The eagle indicator has reached the extremely overbought zone which is likely to lead to a technical correction in the next few hours. For this, we should pay attention to a clear signal to sell, the key is that the EUR/USD pair consolidates below 1.1180.
Since the euro's overall trend remains bullish, EUR/USD will resume its bullish after a technical correction. Therefore, we should pay attention to the key support at 1.1108 or the bottom of the bullish trend channel located at 1.1090. Around this area, we could expect a technical bounce that will be seen as an opportunity to buy with the target at 1.1230.
