Early in the American session, the EUR/USD is trading around 1.1161, above the 21 SMA, and inside the symmetrical triangle pattern forming since September 23rd. The instrument is showing signs of bullish strength. The break of the pattern could accelerate the euro's rise towards 1.1200.
The euro has bullish potential. EUR/USD reached the bottom of the uptrend channel during the European session. Since then, we see a technical bounce so that the price could reach the daily resistance (R_1) around 1.1201.
If the euro reaches this R_1 and fails to consolidate above the key level of 1.1200, it could be seen as an opportunity to resume selling with targets at 1.1158 (21 SMA) and 1.1141.
The Eagle indicator is giving a negative signal. So, if there is any technical bounce and as long as EUR/USD trades below 1.1230 (8/8 Murray), it will be seen as an opportunity to continue selling with the target at the psychological level of 1.10.
