FX.co ★ Trading Signals for EUR/USD for May 2-4, 2024: buy above 1.0681 (21 SMA - 3/8 Murray)

The euro has been trading around 1.0694, above the 21 SMA, and within the uptrend channel forming since April 15. The EUR/USD pair is forming a bullish flag pattern so the instrument is likely to resume its bullish cycle. If the signal of this pattern is confirmed, the euro will break above the flag (1.0710).

The euro made a strong technical rebound when it reached the high of 1.0652, but we are observing that there is an exhaustion of the bullish force. This is likely to cause a correction in the next few hours. A technical bounce at 1.0681 could make the euro reach the 200 EMA located at 1.0741 and finally, the top of the uptrend channel around 1.0770.

EUR/USD could consolidate between 1.0742 (4/8 of Murray) and 1.0620 (2/8 of Murray) in the coming days. We believe that this price range could fluctuate for a long time.

The eagle indicator is giving a positive signal, but showing signs of exhaustion. Hence, any pullback will be used as an opportunity to buy.