Early in the American session, EUR/USD is trading 1.0463 inside the uptrend channel forming since the beginning of February and reaching overbought levels around 6/8 Murray.
On the H4 chart, we can see that the EUR/USD continued its rise during the European session until it reached the top of the bullish trend channel around 1.0487. Since then, we have seen a technical correction which is likely to set the stage for a bullish cycle in the next few hours.
If the euro tries to break 6/8 Murray located around the psychological level of 1.0500, we should expect a consolidation above this area. On the contrary, if this scenario does not occur, we could see a strong technical correction and EUR/USD could fall towards 5/8 Murray located at 1.0376.
The outlook remains bullish for the euro but it is showing signs of exhaustion. If EUR/USD finds a strong rejection at 1.0498, it could be seen as an opportunity to sell.
The eagle indicator is reaching overbought levels and is showing a negative signal. So, our trading plan could be sell positions as long as EUR/USD consolidates below 1.0500.
