Early in the American session, the euro is trading below the 21 and 200 moving averages, showing signs of exhaustion. The EUR/USD is likely to continue rising in the coming hours and could reach the resistance level of 1.0384. This will be seen as an opportunity to resume selling.
The euro has been consolidating since the beginning of the week around 1.0300-1.0320 and is expected to gain strength and could challenge the strong resistance of 5/8 Murray and thus could hit 1.0620.
In case the Euro continues to consolidate at the current price levels, a continuation of the bearish move is expected and it could reach 4/8 Murray around 1.0253 or even reach the bottom of the downtrend channel located at 1.0131.
In case the euro continues to consolidate at the current price levels, EUR/USD is expected to continue the bearish move. So, the instrument could reach 4/8 Murray around 1.0253 or even the bottom of the downtrend channel located at 1.0131.
The euro could extend its bearish cycle as the Eagle indicator is showing a negative signal. Therefore, we expect it to continue falling in the coming days until reaching 1.0131.
