EUR/USD is consolidating around 1.1754, a level that coincides with the top of the uptrend channel formed on the daily chart since November 25.

EUR/USD is expected to encounter strong resistance around the 5/8 Murray located at 1.1795, so this will be seen as a key level for entering short positions only if the euro approaches this area.

On the other hand, if the price loses momentum, we could expect it to reach the key 4/8 Murray support around 1.1718 and could even reach the bottom of the uptrend channel around 1.1695.

A technical rebound above 1.1700 could be seen as an opportunity to resume buying with a short-term target around 6/8 Murray located at 1.1840.

Conversely, a sharp break of the uptrend channel and consolidation below 1.1690 could change the scenario for the euro, and we could expect a strong technical correction with a target at the 21 SMA located at 1.1644. EUR/USD could even reach the 200 EMA at 1.1507.

Our outlook remains bullish for the euro. However, we are seeing signs of exhaustion on the daily chart, so the odds are that there will be a technical correction before resuming its upward cycle.