Early in the American session, the EUR/USD pair is trading around 1.0868, below the 21 SMA, and below the 200 EMA under strong selling pressure but reaching oversold levels.
In the H1 chart, we can see that the euro is approaching the 5/8 Murray support around 1.0864. This level could be seen as an opportunity for a strong technical rebound and the euro could return to 1.0908 and even towards the top of the downtrend channel around 1.0930.
In case the downward pressure persits, the euro could encounter rejection at the bottom of the downtrend channel around 1.08. This level could also offer an opportunity for a technical rebound and could be seen as a signal to buy.
According to the eagle indicator, the euro is trading in an extremely oversold zone since November 29th. So, EUR/USD is expected to have a technical rebound in the coming days and it could reach the 200 EMA at 1.0910.
The market sentiment report shows that there are 46.61% who are selling the euro and 53.39% who are buying. This means that the euro could continue to fall in the coming days, but due to oversold conditions, a technical rebound is expected to occur. Then, selling will resume.
