Early in the American session, the euro is trading around 1.0865, below the 21-month SMA, and below the 1/8 Murray level, showing signs of exhaustion. A technical correction is expected in the coming hours. Hence, the instrument could reach the 200 EMA at 1.0570 in the short term.
If the euro falls and consolidates below 1.0881, it will be seen as an opportunity to sell with targets at 1.0807, at the 8/8 Murray level at 1.0742, and finally, at the 200 EMA at 1.0570.
On the other hand, if the euro consolidates or breaks above the downtrend channel formed after reaching its high at 1.0950, it will be seen as an opportunity to resume buying. We could buy the euro only if it consolidates above 1.0900.
The Eagle indicator has reached overbought levels and is showing a negative signal, so we will look for opportunities to sell below 1.08 in the coming days.
