The EUR/USD rose to reach the top level of the ascending channel at the 1.2748 level. And we expect it will retreat towards the 1.2634 level to cover the gap of Sunday.
We notice on the 4 hours chart the forming of Divergence between the upward trend of the prices and the sideway trend of the Stochastic indicator which indicates that the prices may retreat to the 1.2546 level and should it breach down this level, the next target would be towards the 1.2503 level.
However if the prices would remain trading above the 1.2711 level, this is a signal that it should continue its recovery to rise towards the 1.28 level which represents a great opportunity to enter a sell positions because the general trend of the market is bearish and its rise is just a correction.
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Nice trading guys