Early in the American session, EUR/USD is trading around 1.0588, above the 21 SMA, and below the 3/8 Murray. We can see that the instrument has been in an upward trend since October 2.
The euro made a sharp break of the downward trend channel followed by a technical correction as part of the confirmation of the change in trend. It proves that the euro could reach the 1.0660 zone and even 4/8 Murray 1.072 in the coming days.
At the beginning of trading this week, EUR/USD left a bearish GAP at 1.0549. From there, we saw a strong technical correction. This GAP has already been covered and the trend is likely to continue being bullish until reaching the 200 EMA at 1.0659 which has now become resistance.
On the other hand, in case the euro falls below 1.0565, this could mean a strong correction towards 2/8 Murray, a level that coincides with the psychological level of 1.05. The area around this point will be key for the bulls. If the euro manages to stay above this area, it could offer an opportunity to buy.
The euro is likely to have a technical correction in the next few days because it is showing signs of exhaustion and the eagle indicator is showing overbought signs. Therefore, a good point to sell will be around the 200 EMA at 1.0659.