The euro is trading around 1.1803, above the 38 SMA and below the +1/8 Murray level, with a positive bias but showing signs of exhaustion.
The euro recovered after a four-day technical correction, bouncing around the 8/8 Murray level support at 1.1718. This support gave the euro a bullish push. EUR/USD is now facing resistance at the +1/8 Murray level, which could make it difficult to continue rising above the 1.1840 level.
If the euro breaks below the uptrend channel formed since July 28 and consolidates below the 8/8 Murray level, the outlook could be negative, and the euro could reach the 7/8 Murray level at 1.1596 and eventually the 200 EMA around 1.1386.
On the other hand, if the euro consolidates above 1.1840, it could continue its bullish bias and could reach the +2/8 Murray level at 1.1962, or even the psychological level of 1.20.
The Eagle indicator is showing a negative signal, so as long as the euro price trades below 1.1840, a good option would be to take short positions.
