EUR/USD is trading around 1.1845. During the US session, it reached the 200 EMA zone around 1.1800, and since then, we have seen a recovery in the euro.
However, EUR/USD could struggle to continue rising, as the upper band of the downtrend channel and the 21 SMA are acting as strong resistance.
If the euro resumes its bearish cycle, we can open short positions from current price levels with targets towards the 200 EMA around 1.1802, the bottom of the downtrend channel around 1.1760, and finally at the 4/8 Murray around 1.1718.
In case of a sharp breakout of the downtrend channel and consolidation above 1.1855, the outlook could be positive for the euro, and we could expect it to reach the 6/8 Murray around 1.1962 in the coming days.
The H4 chart shows that the Eagle indicator has reached overbought levels, so we should wait for confirmation. If the price falls below the 5/8 Murray, it could be seen as a signal to sell.
Over the next few days, the euro is expected to continue consolidating within a range below 1.1962 and above 1.1805.
