Early in the American session, EUR/USD is trading at 1.0384, testing the strength of the 200 EMA and the top of the downtrend channel. The euro is expected to experience a technical correction in the coming hours. Just in case the currency pair consolidates below 1.0410, this area represents a strong resistance.
EUR/USD continues its recovery from the key support at 1.0300. However, the technical outlook remains bearish as it is located within the trend channel, so we expect the bearish cycle to resume in the coming hours.
The euro is awaiting the US inflation data to be released during the American session. If the data is positive for the US, we could see a strong boost in the euro's price and EUR/USD could break the 1.0385-1.0410 barrier.
On the other hand, if the data is negative for the United States, we could expect a fall in the euro and EUR/USD could reach the key support of 1.0300 and even fall to 4/8 Murray located around 1.0253.
The Eagle indicator is showing a positive signal, so it makes sense to keep an eye on the zone where 5/8 Murray is located around 1.0376 -1.0390. Above this zone, the instrument is likely to continue rising until it reaches 1.0498.
