EUR/USD is trading around 1.0807, bouncing after having reached the bottom of the downtrend channel forming since March 5. The euro would be showing signs of recovery but should consolidate above 1.0826 (21 SMA) to sustain the bullish movement.
Since the US NFPs data, the euro has been under strong bearish pressure. Having fallen below zero 2/8 Murray, the euro has been under strong downward pressure but could now be showing signs of a technical rebound. Therefore, we could look for opportunities to buy only if the euro consolidates above 1/8 Murray around 1.0803 or in case of a rebound at 1.0780.
If the Euro continues to trade within the secondary bearish channel, we could expect EUR/USD to bounce again around 1.0780 which could also be seen as an opportunity to buy with the target at 1.0864.
The eagle indicator reached oversold levels. So, the euro could continue to bounce above 1.0780 in the coming days and could reach the top of the downtrend channel around 1.0890.
Below 1.0770, we should avoid buying because the decline could accelerate and the instrument could reach 1.0742 and finally 1.0700.
