EUR/USD is trading around 1.1667 above 3/8 Murray and within the uptrend channel formed since November 19.
The euro could undergo a technical correction in the coming hours, and EUR/USD could reach 3/8 Murray. It is expected to reach the bottom of the uptrend channel around 1.1620 if the bearish force prevails.
Given that the euro is showing overbought conditions, we expect a technical correction in the coming hours. If the instrument is below the top of the uptrend channel and below 1.1670, this could be seen as an opportunity to sell with a target at 1.1620.
The outlook remains positive for the euro if the price consolidates above the 200 EMA and above the 2/8 Murray around 1.1600 in the coming days. Then, any technical pullback or rebound could be seen as an opportunity to open long positions.
Remember that in October, EUR/USD left a gap around 1.1740. So, if the price continues to rise above 1.1600, it could reach this level in the coming days.
A decisive break below 1.1596 and below the 200 EMA could change the outlook for the euro, and we could expect it to reach 0/8 Murray around 1.1475.
