After a period of consolidation above the 200 EMA, the euro began a technical rebound, reaching the 4/8 Murray level and even attempting to consolidate above this zone. As a result, EUR/USD is expected to continue rising in the coming days until it reaches the upper band of the downtrend channel around 1.1747.
The euro is poised to continue rising and could break out of the downtrend channel. If this scenario plays out, we should expect the price to consolidate above 1.1750, and then it could reach the target of the April 16 high around 1.1840.
The Eagle indicator is showing a positive signal. So, if a technical correction occurs toward the 200 EMA in the coming hours or the price consolidates above the 21 SMA, we could look for opportunities to open long positions with targets at 1.1747 and ultimately at 1.1840.
If EUR/USD reverses and consolidates below the 200 EMA at 1.1687, we could view this as a continuation of the downtrend and place sell orders with targets at the lower band of the downtrend channel around 1.1625.
Technically, we could expect the instrument to face rejection around 1.1750. If this scenario plays out and the price and upward momentum remain weak, we could view this as a signal to sell, targeting the 200 EMA around 1.1687.
