EUR/USD is trading around 1.1555, above the 21-period SMA, with a positive bias. In the coming hours, we could expect a technical correction towards the 61.8% Fibonacci retracement level around 1.1530. This level is key, as the euro could find strong support around 1.1530 to 1.1545.
Should the price consolidate above this area, it could be seen as an opportunity to resume buying, with targets at the 7/8 Murray level at 1.1596, and potentially even reaching the 8/8 Murray level at 1.1718.
If EUR/USD remains below 1.1530, it could be seen as a continuation of the bearish cycle, potentially reaching the 6/8 Murray level around 1.1474.
The euro has the potential to continue rising in the coming days. However, the price should decisively break out of the descending trend channel formed since the end of September, so EUR/USD is likely to consolidate above 1.1530 in the coming days.
