The euro is trading around 1.1733 within the uptrend channel, above the 4/8 Murray line, and above the 200 EMA, which means it could continue its rise in the coming days if the price rebounds above this zone.
After filling the gap it left at the start of the week, the euro is undergoing a technical correction but appears to be reaching support levels, which favors a recovery for the euro since this zone coincides with the lower band of the trend channel. An imminent technical rebound could occur in the coming hours.
A trend reversal could occur in the euro if the price consolidates below the 200 EMA and below the 4/8 Murray level; it could then initiate a new bearish sequence and reach the 3/8 Murray level around 1.1596.
Given that the euro is within an uptrend channel, the outlook could be positive for the coming days, so we should keep an eye on the 4/8 Murray zone. Above this level, we could buy with targets at 1.1757, 1.1787, and finally at 1.1840 around the 5/8 Murray level.
US inflation data supported the dollar, putting downward pressure on the euro, but we believe it could recover in the coming days, and we could buy above the key level of 1.1718.
