Reaching Channel Breakout Target, EURUSD May See a Correction

The EURUSD currency pair has successfully broken out above the downward channel pattern on the hourly chart. The channel’s width is approximately 120 pips, and EURUSD has reached its target around the 1.10500 mark.

The 20-period Moving Average (MA 20) has crossed above the 50-period Moving Average (MA 50), indicating a bullish trend. However, the Stochastic indicator is currently in the overbought territory, suggesting the possibility of a short-term price correction.

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On the 15-minute chart, the Stochastic is also descending from the overbought region, pointing to a greater potential for a price decline.

Technical References: sell when trading below 1.10850
Potential Take Profit Level 1: 1.10000
Potential Take Profit Level 2: 1.09800
Potential Stop Loss Level 1: 1.10850
Potential Stop Loss Level 2: 1.10950