Early in the American session, EUR/USD is trading around 1.1090, within the uptrend channel forming since September 12th, and with a strong bullish bias but showing signs of exhaustion. If the Euro reaches 6/8 Murray located at 1.1108 in the next few hours, it could be seen as a signal to sell as overbought levels are observed.
If EUR/USD falls and breaks the bullish trend channel and consolidates below 1.1076 (21 SMA), we could expect a technical correction so that the price reaches the 200 EMA located at 1.1058 and finally, 5/8 Murray at 1.1045.
Given that EUR/USD is at a decisive point, the key would be to sell below 1.1108. While the euro trades below this area, our outlook is bearish. EUR/USD could reach 1.10 in the short term and then, continue falling.
Our trading plan for EUR/USD is to sell at current price levels or below 6/8 Murray. The Eagle indicator supports our bearish strategy.