Early during the American session, the euro is trading around 1.0498, below 6/8 Murray, and above the 21 SMA and 200 EMA with a bullish bias. EUR/USD is approaching overbought and resistance levels.

During the European session, the euro reached a high of 1.0517. Since then, we have been observing a technical correction. EUR/USD is likely to continue falling in the next few hours and could reach the bottom of the uptrend channel around 1.0390 and Murray 5/8 at 1.0378.

Technically, the euro is overbought. Therefore, if the price consolidates below the psychological level of 1.05, there is a possibility of a technical correction in the next few days.

If EUR/USD consolidates above 6/8 Murray in the next few days, it is likely to continue rising and could reach 7/8 Murray at 1.0620 and even 8/8 Murray around 1.0725.

Our trading plan for the next few hours is to sell the euro below 1.0500 with targets at 1.0417 and 1.0380. The eagle indicator is giving a negative signal, supporting our bearish strategy.