The euro is trading around 1.1709, undergoing a technical correction after the strong upward movement that began last Friday. Powell's comments propelled the euro's price from the support level at 1.1590 to its high of 1.1745.
The EUR/USD pair is likely to undergo a technical correction this week so that the instrument could reach the level of 1.1596, although technically, a bearish trend is observed.
A consolidation at 1.1780 is needed above this level for a bullish outlook. So, the euro could then reach the level of 1.1829 and even the psychological level of 1.20.
As long as the price trades below 1.1780, any technical rebound will be seen as a clear signal to sell, with medium-term targets around the 3/8 Murray level at 1.1413.
The eagle indicator is showing negative signals. Hence, as long as the price is within the bullish trend channel, it will be seen as an opportunity to sell during a technical correction.
