On January 9, the eagle indicator reached the low of 5 points which indicates a strong technical rebound in the making. Given that gold is oversold, we could expect a consolidation above the 200 EMA at 1.0915 in the coming hours.
For the euro to resume its bullish cycles, we should expect it to consolidate above the 21 SMA located at 1.0945. The next target could be 6/8 Murray located at 1.0986 and 1.1108 (7/8 Murray).
Should the euro decisively break the symmetrical triangle pattern and consolidate above 1.0950, it could be seen as a clear opportunity for a recovery.
On the other hand, we also observe a formation of a head and shoulders pattern which signals a probable recovery provided that the euro consolidates above the 200 EMA or above 1.0900 in the coming days.
Our trading plan for the next few hours is to wait for the euro to consolidate above the 200 EMA 1.0915 to buy with targets at 1.0950 and 1.0986. The eagle indicator is showing an overbought signal which supports our bullish strategy.
