Early in the American session, the Euro is trading around 1.0897, below the 21 SMA, and within the uptrend channel forming since early March.
According to the H1 chart, we can see that the euro is showing signs of exhaustion. Below 1.0900, a technical correction is likely to occur in the coming hours, with the target at the 200 EMA located at 1.0849.
In case the euro consolidates above 1.0900 (21 SMA), we could expect it to reach 3/8 Murray located at 1.0925. Above this area, the instrument could approach the psychological level of 1.10.
During this week, the euro has been following an upward movement after having been consolidating below 1.0864 for several days. Now we expect that EUR/USD will continue to rise in the coming days. But for this, a technical correction should occur to resume the bullish cycle and EUR/USD is expected to trade above 1.0870.
If EUR/USD falls below 1.0864 (2/8 Murray), the outlook could be negative for the euro and we could expect it to reach 1.0803 and eventually, 1.0700.