Early in the European session, the EUR/USD pair is trading around 1.1052, above the 21 SMA, and within the downtrend channel forming since August 29.
The euro could continue to rise in the next hours but it will have to face the 200 EMA located around 1.1082. This area is seen as a strong resistance. If it is overcome, the price could continue to rise until reaching 6/8 Murray around 1.1108.
If the euro falls below the 21 SMA located at 1.1044 in the next few hours, we could expect a further bearish movement. A break below the trend channel could accelerate the movement towards 4/8 Murray located at 1.0986.
If the euro finds a barrier around the 200 EMA located at 1.1082, it will be seen as a signal to sell because technically and according to the Eagle indicator, it is showing overbought signs. We could look for opportunities to sell below this area. Besides, if a pullback occurs around 1.1108, it will also be seen as a signal to sell.
