FX.co ★ Trading Signal for EUR/USD for February 2-3, 2023: sell below 1.0986 (21 SMA- 5/8 Murray)

EUR/USD strengthened and reached the psychological level of 1.1000. In the European session, it reached a maximum of 1.1032. This level coincides with the top of the uptrend channel formed since January 12.

The current overbought conditions of the pair enable a possible correction in the next few hours. The eagle indicator reached 95 points, the level suggesting a strong technical correction in the next few hours.

The 5/8 Murray is the area that represents sideways price movement. While trading below 1.0986, we could expect a drop towards the bottom of the uptrend channel located at 1.0905 or the instrument could even reach the 21 SMA located at 1.0898.

The latest Japanese candles are showing that the euro could make a technical correction in the next few hours. Therefore, we could sell below 1.0985 (5/8 Murray), with targets at 1.0898 (21 SMA). The eagle indicator supports our bearish strategy because it is generating a negative signal.