EUR/USD is trading around 1.1632, recovering after opening trading this week around 1.1575. From that level, the euro is recovering some of its losses and is now consolidating above the 21 SMA. Therefore, the instrument is likely to continue rising in the coming days.
If the euro encounters strong resistance around the top of the downtrend channel formed since December at 1.1640, this could be seen as a signal to open short positions, with a target at the 2/8 Murray at 1.1596. Eventually, EUR/USD could drop to the bottom of the downtrend channel around 1.1550.
With a sharp break above 1.1557 and consolidation above 3/8 Murray, the euro could recover and continue its bullish cycle, reaching the 4/8 Murray at 1.1718 and finally, the 5/8 Murray at 1.1779.
Meanwhile, as long as the EUR/USD pair trades within the downtrend channel, we could expect it to continue moving within this pattern. The decline will likely resume in the coming days, and the instrument could return to the levels of 1.1575 and 1.1550.
The Eagle indicator is showing a positive signal. So, we can look for opportunities to open long positions during any pullback in the coming hours as long as the price consolidates above the 2/8 Murray.
