EUR/USD remains in negative territory. Early in the American session, it fell to lows of about 1.04701, an area that was last visited in January 2017.
According to the daily chart, we can see that a strong downward trend began in early February. EUR/USD is likely to be reaching oversold levels.
The zone of 1.0498 is viewed as the key support level. Around 1.0470, there is the lower border of the downtrend channel. Both levels could offer a technical bounce for the pair and it could reach the level 4/8 Murray at 1.0742.
The outlook for EUR/USD remains skewed to the downside, in response to dollar dynamics, geopolitical concerns and the divergence in the Fed and ECB rhetoric.
Investor concerns continue to push them toward the US dollar as a safe haven and toward US Treasuries, thus weakening the euro and other assets that trade against the dollar.
From a technical point of view, the daily chart shows that the pair continues to fall below the 21 SMA at 1.0826. As long as it remains trading below this level, the outlook remains negative and EUR/USD could drop further to 2/8 Murray at 1.0253.
According to the daily chart, we can see that the euro is going through a technical rebound. If the euro consolidates above the 3/8 Murray located at 1.0498 in the next few hours, we will have an opportunity to buy with targets in the coming days at 1.0742.
The eagle indicator has reached an extremely oversold zone which is a sign of an imminent technical bounce in the coming days. This could give us an opportunity to buy EUR/USD above 1.05.
