Early in the American session, EUR/USD is trading around 1.0477, above the 21 SMA, and above 2/8 Murray. During the European session, we can see that the euro made a sharp break above the 21 SMA around 1.0470. Since it is now trading above this level, it technically favors a recovery for the pair in the coming days.
Given that the euro reached the top of the downtrend channel, we could expect a technical correction to occur in the next few hours towards the 21 SMA around 1.0477, a level where we could expect the instrument to consolidate. This could be seen as a signal to buy.
In case the EUR/USD pair falls and returns below 1.0770, the outlook could be negative and we could see a resumption of the bearish cycle. So, the price could reach 1/8 Murray around 1.0376.
According to the 1H chart, we can see that a technical reversal pattern called a double bottom has been formed. Since then, we observed that the euro began a strong technical rebound. In case a technical correction occurs in the next few hours, it would be seen as an opportunity to buy as long as EUR/USD trades above 1.0450.
Our trading plan for the next few hours is to wait for a correction to occur until the price reaches the 1.0777 area to resume buying with the target at 1.0551 (200 EMA). The eagle indicator is producing a positive signal which supports our bullish strategy.
