Early in the American session, the Euro (EUR/USD) is trading around 1.0595 above the 21 SMA, below the 200 EMA, and below 3/8 Murray. In recent days, the euro has been consolidating above 1.05 with an oscillating movement lacking strength to define its trajectory.
If the euro reaches 1.0623 (200 EMA) in the next few hours and fails to break it, this could be seen as an opportunity to sell with the target at 1.0566 and at the bottom of the uptrend channel around 1.0545.
According to the H4 chart, since the beginning of October, the euro has been trading within an upward trend channel. As long as the euro trades above 1.0540, any technical correction could be seen as an opportunity to continue buying with the target at 1.0620 and at the top of the trend channel around 1.0685.
In case of a sustained recovery in EUR/USD, it is expected to consolidate above 1.0660. Then, it could reach 4/8 Murray around 1.0742 and even the high of September 12 around 1.0767.
On the other hand, with a sharp break in the uptrend channel and a daily close below 1.0535 on the H4 chart, we could expect a resumption of the bearish movement and the instrument could reach 2/8 Murray and even 1/8 Murray at 1.0376.