Early in the American session, we see that EUR/USD is trading around 1.0279, pulling back after having reached the top of the bearish trend channel forming since the beginning of November. Now it is likely to find good support around 4/8 Murray.
If the instrument settles above 1.0250 in the next few hours, the outlook could be positive and it will be seen as a signal to buy with the target at 1.0310. If EUR/USD breaks the bearish trend channel, it could reach the 200 EMA located at 1.0408.
On the contrary, if the euro consolidates below the 21 SMA and below 4/8 of Murray in the next few hours, it is likely to continue its bearish sequence and could reach 3/8 of Murray at 1.0131 and could even reach 1.0000.
The eagle indicator is showing a bearish signal. However, we are observing a strong drop in trading volume. Therefore, if the euro consolidates above 1.0250 in the next few days, it could resume the bullish cycle.
The material has been provided by InstaForex Company - www.instaforex.com
