Early in the American session, the Euro is trading around 1.0818, below the 21 SMA, and below the 200 EMA under bearish pressure but showing signs of exhaustion.
The key level for the euro that acts as a good support is 1/8 Murray around 1.0803. Above this area, we could look for opportunities to buy with the target at the 2/8 Murray resistance around 1.0864.
Since March 25, the eagle indicator has been giving a positive signal. Thus, we believe that the euro could recover in the coming days, but to do so, it should consolidate above 1.0826 (21 SMA). Then, EUR/USD could gain momentum and reach 1.0857 and even the top of the downtrend channel around 1.0890.
With a fall below 1.0770, the euro could continue its decline and could even reach 0/8 Murray at 1.0742. the ultimate bearish target is the key level of 1.0700.
We believe that in the next few hours, the euro could resume its bullish cycle, but to do so, we could look for opportunities to buy at current price levels or above 1.0803. Below this area, we should avoid buying or should place a stop loss because a downward acceleration could occur.
