During the European session, the EUR/USD pair reached a high of 1.0440. From that point, we see a technical correction, as the chart shows that the price sharply broke the downward trend channel that had been forming since January 24.
Yesterday, the US inflation data was stronger than expected which caused a strong fall in EUR/USD, reaching the bottom of the bullish trend channel around 1.0310. Since then, we have seen a strong recovery. During the European session, the price reached a weekly high at 1.0440.
If the price consolidates above 1.0335 in the next few hours, the euro could gain ground. Technically, a sharp break of the bearish trend channel occurred. Therefore, the bullish trend will prevail in the next few days. Hence, we will look for opportunities to buy above 1.0340.
Finally, if the instrument consolidates above 1.0383 (200 EMA) and finds strong support, it will also be seen as an opportunity to buy at about 1.0376 where 5/8 Murray is located.
The eagle indicator is reaching overbought levels. So, after this technical correction, the bullish cycle is expected to resume.
