Early in the American session, the euro is trading around 1.1616, showing a strong upside after bouncing off the bottom of the bullish channel formed since early May.
The current area where the EUR/USD pair is trading has proven to be strong resistance. Hence, an imminent technical correction is likely to follow in the coming hours, which could also be seen as a signal to sell.
The H4 chart shows a triple-top formation pattern. If the euro price falls below 1.1620, the signal will be negative, and we could sell with a target at 1.1533. EUR/USD could even reach the Murray 6/8 around 1.1474.
If the euro consolidates above 1.1620, we could expect it to reach the top of the uptrend channel around 1.1690, and it could even reach the Murray 8/8 at 1.1718.
The Eagle indicator is showing a negative signal, suggesting a strong technical correction could occur in the coming days, so we could sell EUR/USD at current price levels.
A sharp breakout of the uptrend channel below the Murray 6/8 could signal a strong trend reversal. In case EUR/USD falls, it is likely to close the gap created on May 14 around 1.1165.
