Early in the American session, EUR/USD is trading around 1.0737, after having reached the bottom of the bearish channel around 1.0722. The instrument is likely to continue bouncing in the coming hours if it consolidates above 0/8 Murray located at 1.0742.
In case the euro lacks bullish strength, EUR/USD could consolidate above the bottom of the downtrend channel around 1.0720. The pair is likely to gain momentum and could rebound to the level of 1.0794 (21 SMA). Otherwise, it could resume its bearish cycle and we should avoid buying or assuming our losses.
The euro left a GAP at about 1.0786 that needs to be covered. EUR/USD is likely to return to this level in the coming days which could be seen as an opportunity to buy.
At the current price level of 1.0720, it will be a key point to buy. EUR/USD is likely to rise and reach the top of the downtrend channel around 1.0845.
In case the bearish force prevails, the euro has strong support located at -1/8 Murray at 1.0681 and it would be a good opportunity to buy in case EUR/USD rebounds around this area.
The eagle indicator is showing an oversold signal and a technical rebound is imminent in the next few hours. So, it will be seen as an opportunity to buy at price levels with a stop loss around or below 1.0700 and with targets at 1.0794 and 1.0840.
