Early in the American session, the Euro is trading around 1.0323 within the bearish trend channel forming since January 21st, below the 200 EMA, and below the 21 SMA. EUR/USD is having a technical bounce after having reached 1.0190.
If the euro extends its rise in the next few hours, it could find strong resistance around the top of the downtrend channel located at 1.0398, which could give us an opportunity to sell.
On the other hand, below the 21 SMA, the euro is expected to continue with a bearish trend. Hence, the price could reach 1.0253 in the next few hours and even the bottom of the bearish trend channel around 1.0150.
The eagle indicator is showing a positive signal and we expect that EUR/USD could continue to rise in the next few hours and even break the bearish trend channel. If this scenario comes true, we should expect a consolidation above the 200 EMA. So, the outlook could be positive for the euro for the next few days.
Our trading plan for the next few hours is to sell the euro at current levels or if it reaches 1.0390 with targets at 1.0253 and 1.0160.
