Early in the American session, EUR/USD was trading around 1.1185, showing signs of exhaustion after having bounced from the bottom of the uptrend channel and above Murray 6/8.
Currently, the EUR/USD pair is trading within the uptrend channel, but a strong technical correction could occur. For this, we could wait for a pullback towards the top of the uptrend channel around 1.1219 or we could sell at the current levels, with targets at 1.1150 and 1.1130.
Since September 17th, the EUR/USD pair has been consolidating and showing signs of exhaustion, but after a strong technical correction, it gained a new bullish impulse. Therefore, we believe the instrument could once again enter a consolidation phase, so we will look for opportunities to sell below 1.1200.
If the euro continues to rise, it has strong resistance around 1.1219 (top of the bullish channel) and 1.1230 which coincides with 8/8 Murray. Resistance could prevent EUR/USD from a further rise. Once this area is reached, the price could make a technical correction.
Our trading plan for the next few hours is to sell the euro at current price levels or wait for it to reach the area between 1.1200 and 1.1219 to sell with targets at 1.1150 and 1.1132.
