Early in the European session, the euro is trading around 1.1725, undergoing a technical correction after attempting to break through the upper band of the uptrend channel.

The euro could consolidate in the coming hours around the 4/8 Murray line or the 21-day SMA before resuming its uptrend.

Technically, on the H4 chart, we observe that the euro is trading within a bearish trend channel formed since April 13. If the instrument falls below the 200 EMA around 1.1683, a strong technical correction toward the psychological level of 1.1500 could occur.

As long as EUR/USD consolidates above the 21 SMA and above the 200 EMA, any pullback could be considered a signal to continue buying in the coming days.

A decisive breakout and consolidation above the downtrend channel and above the April 26 high around 1.1750 could be seen as a positive signal, and we could continue buying the euro with targets at the 5/8 Murray level around 1.1840.

The Eagle indicator is giving a positive signal, so we could buy the euro in the coming days in case of a technical correction to the 200 EMA. Around this area, a technical rebound could give us an opportunity to open long positions.