EUR/USD is trading around 1.1396, rebounding after touching the lower band of the uptrend channel around 1.1389. If, in the coming hours, the euro consolidates above this area and remains within the uptrend channel, the outlook could be positive, and we could expect it to close the gap it left around 1.1416.
Technically, the euro is in overbought territory; however, a pullback toward the 21SMA level could be expected in the coming days before the selling trend resumes.
Conversely, if the euro consolidates above 1.1425, the outlook could be positive, and we could expect it to continue rising until it reaches the 6/8 Murray level, around 1.1474; ultimately, we could expect it to reach the 200 EMA level, around 1.1485.
The euro always adheres to its technical parameters, so our outlook could be positive in the coming hours. If EUR/USD consolidates above 1.1380, any pullback could be viewed as an opportunity to open long positions.
The first target in our bullish trading plan could be 1.1421, the level of closing the gap after reaching the 6/8 Murray level, and finally, the upper band of the bullish channel, around 1.15.
Conversely, if the price consolidates below 1.1380, the euro could continue to fall until it reaches the strong 5/8 Murray support level, around 1.1352. In this area, we might consider buying if the price rebounds and consolidates above this level.