Early in the American session, the euro (EUR/USD) is trading below the 21 SMA and above the 6/8 Murray, showing signs of exhaustion. The instrument is likely to continue a technical correction for the next few hours.
The euro could resume its bullish cycle if it consolidates above 1.1150. Then, EUR/USD could reach 7/8 Murray at 1.1169 and finally, it could reach the top of the downtrend channel around 1.1200.
Technically, the euro is seen to be oversold. The key for the price is to remain below the 21 SMA. This could be seen as a signal to sell.
In turn, with a sharp break of the uptrend channel and a consolidation below 1.1108, EUR/USD could continue the bearish movement and the price could reach the 200 EMA located at 1.1061 and finally, could reach 4/8 of Murray around 1.0986.
