Early in the European session, the euro is trading around 1.1772 with a positive outlook. Therefore, we believe that if the price consolidates above 1.1718, it could continue to rise in the coming days, reaching +1/8 Murray around 1.18.40.
The euro is in an uptrend, so any pullback will be seen as an opportunity to continue buying. EUR/USD has two very strong supports around 8/8 Murray and the 21 SMA, which gives the price the opportunity to continue rising.
A fall below both levels and a break of these supports could signal a trend reversal, and the euro could resume its bearish cycle and could reach the 200 EMA around 1.1620 and even reach the July 16 low around 1.15.50.
Technically, the euro is reaching exhaustion levels. In the latest trading, Japanese candlesticks called dojis can be seen on the technical chart, indicating market indecision. A technical correction is likely in the coming days.
Our training plan for the next few hours is to sell below 1.1780, with a target of 1.1718. Once this price is reached, the euro could resume its bullish cycle, so the key level to watch is the 1.1707 area.
