The euro is trading around 1.0747, above 0/8 Murray, and inside the downtrend channel forming since March 8. On the H4 chart, we can see that the euro reached the bottom of the downtrend channel around 1.0720 and from that level, it is bouncing and is likely to continue rising. EUR/USD could reach the 21 SMA located at 1.0770.
The euro could recover in the next few days only if it consolidates above 1.0742 or in case there is a pullback towards 1.0711. It could be a good point to buy on the technical rebound and the price could reach 4/8 Murray located at 1.0864.
The outlook for the euro remains bearish, but according to the eagle indicator, the euro is strongly oversold. So, the EUR/USD is likely to make a technical rebound in the coming days which could be seen as an opportunity to buy.
In case the euro continues to fall below -1/8 Murray, we could expect a strong acceleration and the euro could reach the psychological level of 1.05.
Meanwhile, we believe there could be a recovery in EUR/USD in the coming days. So, we will look for opportunities to buy above the EUR/USD pair above 1.07 as the instrument could hit the target of the 200 EMA located at 1.0841 and finally, the 4/8 Murray at 1.0864.
