EUR/USD is trading around 1.0825 within the downtrend channel. We believe that the euro could make a technical rebound since it reached the bottom of the downtrend channel during the European session. This area coincides with the 1/8 Murray which could be a point for a recovery in the next few hours.
The euro could resume its bullish cycle if it consolidates above 1.0864 in the coming days. If this scenario comes true, we could expect a recovery towards the top of the uptrend channel located at 1.0925.
A sharp break above the downtrend channel and a consolidation above 1.0925 on the daily chart would be seen as a resumption of the uptrend and an opportunity to buy with targets at 1.0986 and finally, at the psychological level of 1.10.
The euro could recover in the next few hours, but for a sustained recovery, we should expect it to consolidate above the 200 EMA. If this scenario does not occur, any attempt to approach this area will be seen as a signal to sell with targets at 1.08 and finally, at 0/8 Murray located at 1.0742.
Since March 20, the eagle indicator has been showing an oversold signal. So, a technical bounce is likely to happen in the next few hours and could be seen as an opportunity to buy above 1.0803.
