Early in the American session, the euro is trading around 1.1320 within the uptrend channel formed on the H4 chart since May 9 and showing signs of exhaustion.
If the euro continues its bullish cycle, we could expect a break and consolidation above 1.1354, then it could reach the 7/8 Murray level at 1.1475.
Technically, we observe that the euro is overbought, and the chart shows a small secondary downtrend channel, which will be viewed as a selling opportunity in the coming days.
The euro could attempt to recover in the coming hours as we see a small technical rebound. However, it faces strong resistance around 1.1354. Below this area, any technical rebound will be viewed as a selling opportunity, with short-term targets around the psychological level of 1.1000.
A sharp break of the uptrend channel and consolidation below the 6/8 Murray level could confirm the next bearish move and could fill the gap left at 1.1162 and even reach the 5/8 Murray level at 1.0986.
