Early in the American session, the Euro (EUR/USD) is trading around 1.0783, below the 21 SMA, and within the downtrend channel formed since November 27th. The H1 chart shows that the Euro continues to move within a downtrend channel and is likely to continue falling in the coming hours until it reaches the bottom of this trend channel or moves towards 4/8 Murray which represents strong support.
Having reached the psychological level of 1.10, EUR/USD has been trading actively for several consecutive sessions. In the coming hours, the Euro is expected to break the secondary downtrend channel and consolidate above 1.0795. So, we could expect a recovery of the pair and the price could reach 1.0830 and even the 200 EMA located at 1.0873.
On the other hand, as long as the euro continues to trade below 1.0800, the outlook will remain negative and the instrument could reach 4/8 Murray at 1.0742. If this scenario occurs, it will be seen as a signal to sell.
The eagle indicator is giving a negative signal. The EUR/USD pair is expected to extend its weakness in the coming hours. Thus, I suggest we grasp this opportunity to sell below 1.0795.
Market sentiment shows that there are 53% of traders who are buying EUR/USD. According to our strategy contrary to market consensus, the euro is expected to continue to fall in the coming days but could reach oversold levels, so we expect a technical rebound to occur.
Our trading plan for the next hours is to sell the euro below 1.0792 with the target at 1.0742. We can also go short if there is a break above 1.0795. This will be seen as a signal to buy with the target at 1.0864.
