Early in the American session, the EUR/USD pair is trading at 1.1169, bouncing after having hit a low of 1.1090. Currently, we see that the instrument is showing signs of exhaustion. If EUR/USD falls below 7/8 Murray, it could make a technical correction with the target at 1.1124 (21 SMA).
The Eagle indicator reached the extreme zone of 95 points. This indicates an imminent technical correction, so during the American session, we will look for opportunities to sell below 1.1170 with targets at 1.1125, at 6/8 Murray located at 1.1108 and finally, at the bottom of the bullish trend channel around 1.1085.
On the contrary, if the euro consolidates above 1.1190, the outlook could remain bullish. Therefore, EUR/USD could reach 8/8 Murray around 1.1230. However, this possibility could be ruled out as the euro is losing bullish strength. We believe that a technical correction could occur below 7/8 Murray and it would be seen as an opportunity to sell.
