EUR/USD is trading around 1.1572 within a descending trend channel formed on September 11th, facing strong resistance around 1.1596.
It is expected that the euro will struggle to continue rising in the coming hours due to strong resistance around the 7/8 Murray level. A pullback below this zone could trigger a sharp technical correction during which EUR/USD could even reach the 6/8 Murray level at 1.1474.
In case of a decisive break above the 7/8 Murray level, we could expect EUR/USD to reach 1.1718 and even close the gap left in October around 1.1740.
The outlook remains bullish for the euro. Therefore, any pullback will be seen as a buy signal.
If the euro pulls back towards the key support level of 1.1535 in the coming hours, it could be seen as a buying opportunity with a target at 1.1718.
