The euro is trading around 1.0811, below the 200 EMA, and within a secondary uptrend channel forming since February 14. According to the H4 chart, the euro has strong resistance around 1.0820 (200 EMA) and around the top of the downtrend channel forming since the beginning of February at 1.0830.
If the euro tries to break the resistance zone of 1.0830 in the next few hours and fails to consolidate above this area, we could expect there to be a technical correction and EUR/USD could fall towards the 21 SMA located at 1.0787. If this scenario occurs and if bearish pressure prevails, the Euro could break the secondary uptrend channel. Then, we could expect it to reach 0/8 Murray at 1.0742 and finally -1/8 Murray at 1.0681.
Since February 20, the eagle indicator reached the extremely overbought zone. Since then, it is showing signs of exhaustion. In the next few hours, a technical correction in EUR/USD is expected to occur only if it consolidates below 1.0830. A break below 1.0790 (21 SMA) could accelerate the bearish move and the instrument could reach the area of 1.0680.
Our trading plan for the next few hours is to sell the euro below the 200 EMA or below the top of the downtrend channel with targets at 1.0785, and 1.0742. The eagle indicator is giving a negative signal which supports our bearish strategy.