ER/USD is trading around 1.1639, above the 200 EMA, and above the 21 SMA, within a descending trend channel. In the coming hours, the euro could reach the strong resistance at 1.1650. If this level is broken in the coming days, it could reach 1.1718 around Murray's 8/8 level, and finally, we could expect it to reach 1.1740.
Should the euro fall below the 200 EMA at 1.1609 and below the 21 SMA at 1.1592, the bearish cycle could resume, and we could expect EUR/USD to reach Murray's 6/8 level at 1.1474.
The Eagle indicator has reached overbought levels, so the most prudent course of action is to wait until EUR/USD reaches a resistance zone before opening short positions.
The bullish outlook still prevails for the euro as long as the price settles above 1.1600. Any pullback above this level will be seen as a buy signal with targets at 1.1740.
The outlook could turn negative in the short term if the euro falls below 1.1590; then, it could reach 1.1474 and even the 5/8 Murray level around 1.1350.
