EUR/USD is trading around 1.1614 after reaching the 7/8 Murray level and the 200 EMA. We can observe on the H4 chart that the euro is breaking through these resistance levels and is likely to continue rising to reach the top of the ascending channel around 1.1655.
In the past, the euro has struggled to stay above 1.1600. This level has now become support as the price has broken through it. EUR/USD is likely to continue rising in the coming days to fill the gap left around 1.1740.
If a consolidation occurs above the 7/8 Murray level, the outlook could be positive for the euro, and any pullback will be seen as an opportunity to take long positions.
However, we must be very cautious, as the euro is reaching overbought levels. A sharp technical correction could occur below 1.1660 or 1.1600.
The Eagle indicator is showing a positive signal, so we will continue buying in the coming days until the instrument reaches 8/8 of Murray at 1.1718 and 1.1740.
