Early in the American session, the EUR/USD pair is trading around 1.0438, above the 200 EMA, and above 5/8 Murray with a bullish bias.

On the H4 chart, we can see that the euro has continued its rise since it sharply broke the uptrend channel, but is now showing consolidation. Therefore, EUR/USD is likely to reach 6/8 Murray at 1.0498 in the next few days and could even reach 7/8 Murray at 1.0620.

Below the 21SMA and below 5/8 Murray, the outlook could turn negative for the euro. So, EUR/USD could return below the bearish channel to reach 4/8 Murray at 1.0253. The price could even fall towards the low of 1.0131.

The eagle indicator is showing an overbought signal. Hence, after a technical correction in the next few hours, the euro could resume its bullish cycle. In the meantime, we will look for opportunities to sell below 1.0457 with the target at about 1.0360.