EUR/USD is trading within an uptrend channel, within a symmetrical triangle pattern, above the 200 EMA, and above the 2/8 Murray support located at 1.0864.
The symmetrical triangle pattern could give us a key signal. We just have to wait for a break on one of its sides. Due to a bullish breakout, the instrument could reach 1.0911 and even the top of the downtrend channel around 1.0940.
On the other hand, if the euro continues its fall, EUR/USD should stop around the strong support and try to rebound from that level. This area is located around the 200 EMA and 2/8 Murray. If this scenario occurs, at this point we could look for opportunities to buy with the target at 1.0930.
The bullish trend could change in the euro and EUR/USD could enter a new bearish phase. For this, we should expect a fall below 1.0864. Then in the short term, the instrument could reach 1.0803 and even 1.0700.
As the eagle indicator is approaching oversold levels, we could look for opportunities to buy the euro. Above 1.0880 or around 1.0860, both levels will give us a key point to buy. But below this area, we should avoid buying as a bearish acceleration could occur.
The market sentiment report shows that there are 54.26% of traders who are buying the euro. According to our contrary strategy, the euro is expected to fall below 1.0864 in the coming days only if the percentage of buyers exceeds 60%.
Our trading plan for the next few hours is to buy the euro above 1.0860 or above 1.0880 with the target at 1.0940.
