The euro is trading around 1.1518, consolidating above the 2/8 Murray line and above the 21-day SMA, which suggests it could continue to rise in the coming days.
After hitting a low around 1.1410, the euro staged a strong technical rebound and is now likely to continue rising in the coming days until it reaches the top of the downtrend channel at 1.1665; it could even reach the 200 EMA around 1.1678.
On February 27, the euro left a gap around 1.1820, so the euro will likely continue to trade with an upward bias in the coming days until it closes this gap.
If, in the coming hours, EUR/USD undergoes a technical correction toward the 2/8 Murray level at 1.1474, this will be seen as a buy signal with a target at 1.1596.
A consolidation below the 21 SMA and below 1.1483 could change the outlook for the euro, and we could expect it to go ahead with a bearish bias, potentially reaching the 1/8 Murray level around 1.1360.
Given that the Eagle indicator is showing a positive signal, any pullback—as long as the price trades above 1.1410—will be seen as a signal to buy in the short term.
