Early in the American session, EUR/USD is trading around 1.0397 above the main downtrend channel which was broken and above the 21 SMA with a bullish bias.
On the H4 chart, we can see that the Euro is within a secondary bullish trend channel and is now gaining momentum. We believe that EUR/USD could continue its rise in the next few days and could even reach 8/8 Murray located at 1.0742.
In case the Euro falls below the 21 SMA located at 1.0327, the bearish outlook could resume and we could expect a new bearish cycle. Thus, the Euro could reach 3/8 of Murray located at 1.0131.
In the meantime, we will look for buying opportunities above 1.0327. Any technical bounce above this zone will be seen as a positive sign, with targets at the 200 EMA located at 1.0400, and finally at the 6/8 Murray around the psychological level of 1.0500.
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