Early in the American session, the EUR/USD pair is trading around 1.0400 where the 21 SMA and the 200 EMA are located, acting as support.
On the H4 chart, we can see that the euro has been trading within an upward trend channel since January 10, but it is showing signs of exhaustion. Therefore, if EUR/USD consolidates below 1.0400 in the next few hours, we could expect it to continue falling.
The 6/8 Murray level located at 1.0498 acts as a strong resistance. In case the euro consolidates above 1.0400, it is likely to continue rising until the instrument reaches this area.
On the contrary, the 4/8 Murray support located at 1.0253 could offer good support to the euro if it falls below 5/8 Murray and below the 200 EMA which will be seen as a signal to sell.
The Eagle indicator is reaching an overbought zone. So, we believe that there will be a strong fall in EUR/USD in the next few days. The 1.0400 level could be a key level to sell.
The material has been provided by InstaForex Company - www.instaforex.com
