Early in the American session, the euro (EUR/USD) reached a low of 1.0110. This level represents strong support because since July 26, it has been giving strong support to the pair.
It is currently trading around 1.0130. This level coincides with 3/8 Murray and as long as the price remains above this level, it is likely that the technical bounce could continue and the pair could reach the 21 SMA located at 1.0168.
If the euro manages to accumulate an upward force and could break through the bearish channel formed on August 9, it could continue the upward movement and reach the EMA 200 located at 1.0246 and even reach 4/8 Murray located at 1.0253.
On the other hand, in the event that the euro breaks this key support at 1.0110, it could be a clear signal for a bearish advance, and the price could reach the 2/8 Murray zone located at 1.0009.
The euro is under downward pressure as seen on the 4-hour chart. It is below the 200 EMA and below the 21 SMA. In case the EUR/USD pair returns above 1.0253, the downward pressure could ease and it could start a bullish cycle and reach 1.03 76 and 1.0498 (6/8 Murray).
Technically, we can see that the US dollar index (USDX) is now trading above the 200 EMA located at 105.88. This could be a clear sign that the euro could continue its downward cycle and could reach parity in the coming days.
Our trading plan for the next few hours is to wait for a pullback towards the 21 SMA located at 1.0168 or to sell below 3/8 Murray located at 1.0131. The target can be placed at the 2/8 Murray support located at 1.0009.
