Early in the American session, the EUR/USD pair is trading around 1.0487, pulling back after reaching a high of 1.0523. This area acted as a strong resistance forming a double-top pattern. Now, we observe a technical correction.
If the euro breaks sharply in the next few hours from the bullish trend channel forming since the beginning of February and consolidates below the 21 SMA located at 1.0482, we could expect a fall. Hence, EUR/USD could reach 2/8 of Murray located at 1.0375.
On the other hand, in case the instrument bounces above 1.0482, we could see this as a signal of a further bullish movement. Therefore, we could buy with targets at 1.0500, 1.0532 and finally, at the 5/8 Murray at 1.0559.
The eagle indicator is showing a negative signal, so we should wait for a confirmation below 1.0482 to sell the euro in the coming days.
