The euro is trading around 1.0926 within the uptrend channel forming since July 31 and within the downtrend channel forming since August 5. We are observing a technical correction that could be seen as a resumption of the uptrend.

The euro bounced off the bottom of the uptrend channel during the European session and since then we have seen a recovery of the EUR/USD pair but it is facing a resistance at 1.0937.

The bullish outlook still prevails in EUR/USD. We believe that if it consolidates above 1.0940, it could continue its rise and reach 4/8 Murray around 1.0986 and even the psychological level of 1.10.

In case the euro fails to consolidate above 1.0940, we could see this as a negative signal and we could sell EUR/USD below this zone, with targets at the 200 EMA located at 1.0872. EUR/USD could even reach 2/8 Murray at 1.0864.

The outlook could be positive for the euro if it consolidates above the Murray 4/8 pivot point in the coming days. Then, we could look for buying opportunities with the target at Murray 6/8 around 1.1108.

A drop and close below 1.0864 on the H1 chart could indicate the euro's return to the key level of 1.0803. The instrument could even continue its decline to the June low of 1.0680.