Early in the American session, EUR/USD is trading around 1.0519, bouncing after having reached the bottom of the uptrend channel around 1.0460. From this level, we can see that the euro is now consolidating above the psychological level of 1.05. It is likely that EUR/USD could continue its rise in the next few days until it reaches the 200 EMA located at 1.0659
In case the euro consolidates above 1.05 in the next few hours, it could be seen as an opportunity to continue buying. In turn, we should expect the euro to settle above the 21 SMA. This could confirm the recovery of the euro. Therefore, we could expect it to cover the gap it left at 1.0565 and even reach 3/8 Murray at 1.0620.
If the euro breaks sharply from the bullish trend channel, it could continue to cover the gap it left on November 21st around 1.0418. The instrument could even reach 1/8 of Murray around 1.0376.
The eagle indicator is reaching the overbought zone, so we could expect the euro to reach a high of 1.0620 or 1.0659. Then, EUR/USD could resume its bearish cycle.