EUR/USD is trading around 1.0695 within the uptrend channel forming since April 15, above the 21 SMA, and above the 2/8 Murray.
On the H4 chart, we can see that the euro is showing signs of exhaustion. So, a technical correction is likely to occur in the coming hours. The key point for the euro to resume its bullish cycle could be around 1.0670 (21 SMA) or at the bottom of the uptrend channel around 1.0651.
We believe that the euro could extend its rise in the next few days and could reach 4/8 Murray located at 1.0742. Finally, EUR/USD could climb to the 200 EMA located at 1.0760.
A close above 1.0760 and above 4/8 Murray on the H4 chart will mean a longer bullish potential. Therefore, EUR/USD could rise to the psychological level of 1.10 in the short term.
Conversely, a sharp break below the uptrend channel and fixation below 1.0650 will enable the euro to reach 1.0620 and 1/8 Murray around 1.0559.
The material has been provided by InstaForex Company – www.instaforex.com
