With tensions rising over a potential global trade war, the US dollar is strengthening and in turn, putting pressure on the EUR.
At the opening of trading this week, we saw a bearish gap around 1.0280 which has already been filled.
In the next few hours, we could expect the euro to reach the resistance zone of 3/8 Murray located at 1.0376. EUR/USD could even reach the 21 SMA located at 1.0380 where it also coincides with the 200 EMA located at 1.0385.
This area represents a strong resistance to the euro. In case there is a pullback towards this area, we could grasp the opportunity to sell with targets at 1.0253 and, finally, at 1.0131.
On the contrary, if the euro consolidates above 1.0400, the outlook will be positive and it is likely to reach 6/8 Murray at 1.0498 and 1.0620.
The eagle indicator is showing a positive signal. So, in case there is a technical bounce around 1.0253, it will be seen as an opportunity to buy.
