Early in the American session, EUR/USD is trading around 1.0470, approaching resistance which coincides with the top of the bearish trend channel forming since February 19.
EUR/USD closed last week's trading around 2/8 Murray located at 1.0376. After the opening of this week's trading, we observed that EUR/USD opened with a bullish gap which favored a strong rally in the euro during which EUR/USD climbed to resistance levels and approached the psychological level of 1.0500.
The euro is in a strong resistance zone. So, as long as it holds below 1.0480, it will be seen as an opportunity to sell with targets at the 21 SMA and the 200 EMA located around 1.0423.
If EUR/USD maintains bullish momentum, the euro is expected to find strong resistance around 1.0498, which could also be seen as an opportunity to sell.
We can see on the H4 chart that EUR/USD has left a gap that still needs to be filled. This fact allows us to sell the euro in the next few days below 1.0500 with a target at 1.0376.
Our trading plan for the next few hours is to sell the euro below 1.0480 - 1.0500 with targets at 1.0437 and 1.0376.
