Early in the American session, EUR/USD is trading around 1.0471 below 6/8 Murray and within the uptrend channel forming since February 2.
On the H4 chart, the euro has been struggling to consolidate above the psychological level of 1.0500 which has been putting pressure on EUR/USD and now we are seeing a technical correction.
EUR/USD could extend its upward movement and reach the top of the uptrend channel around 5/8 of Murray located at 1.0376 in the next few hours.
In case EUR/USD consolidates above 1.0498, it could extend its bullish movement and reach the top of the bullish trend channel around 1.0535. In case EUR/USD breaks this zone, it could quickly reach 7/8 Murray located at 1.0620.
Market fears are against the euro as investors are assessing the impact of the US President's tariffs on the Eurozone.
Risk sentiment could trigger a strong bearish move in the euro and we could expect it to reach 4/8 Murray around 1.0253.
Our trading plan for the next few hours is to sell EUR/USD below 6/8 Murray with targets at the 21 SMA located at 1.0448, around the 200 EMA located at 1.0396 and finally, at 5/8 Murray located at 1.0376. The Eagle indicator is showing a negative signal which supports our bearish strategy.
