Early in the American session, the Euro is trading around 1.0845, below +1/8 Murray, above the 200 EMA, and the 21 SMA. On the H4 chart, we can see that the Euro is in an overbought zone. So, we could expect a technical correction to occur in the next hours and EUR/USD could reach 8/8 Murray at 1.0745.
Yesterday, the euro broke the symmetrical triangle pattern and made a strong upward move supported by the US inflation data, which came in below analysts' expectations. This benefited the euro which reached the resistance zone of 1.0864. Below this area, the EUR/USD pair could make a technical correction in the coming days.
Since October 31, EUR/USD has been trading within an uptrend channel. Yesterday, it reached the top of this channel around 1.0884. Since then, we have observed a technical correction on the chart. If the Euro tries again to break this zone and fails, it could be seen as an opportunity to sell.
EUR/USD could extend its rise and reach +2/8 Murray located at 1.0986 only if it consolidates above 1.0870 in the coming days. Then, it could even reach the psychological level of 1.1000.
On the other hand, as long as the euro trades below 1.0864, it will be seen as a signal to sell in the coming days, with targets at 1.0741 and 1.0720. The latter represents the bottom of the uptrend channel.