The euro experienced a strong upward movement following consolidation within the secondary downtrend channel formed since early December, which led EUR/USD to reach a high of 1.1707.
We are now seeing a technical correction in the euro, but this could be seen as an opportunity to open long positions if the price reaches the 3/8 Murray support around 1.1658. Above this zone, it could be seen as an opportunity to buy in the coming days.
On the H4 chart, we can see that the euro left a gap on September 25 around 1.1740. We believe that the euro could continue its rise in the coming days and cover this gap, so any pullback will be seen as a signal to buy.
The Eagle indicator is showing a positive signal, so if the euro trades within the uptrend channel formed since November 24, it will be seen as an opportunity to buy with targets at 1.1718, 1.1740, and even 1.1765.
A drop below 1.1640 and a sharp break of the uptrend channel could signal a change in trend, and we could expect the euro to return to the 1/8 Murray levels around 1.1538.
