The euro is trading around 1.0800, within the downtrend channel forming since May 14, and above the 200 EMA showing signs of a technical rebound and recovery.
During the European session, the euro reached 1.0787. Since then, the instrument has been recovering. EUR/USD is likely to continue rising in the coming days until reaching the top of the downtrend channel around 1.0850.
The technical chart shows that the euro is oversold. So, a technical rebound in the coming days will be seen as an opportunity to buy only if it consolidates above 1.008.
On the contrary, after a fall below 1.0787, the outlook could change and the euro could reach levels of 1.0715 and even 1.0645 where monthly support is located.
Our trading plan for the next few hours is to buy the euro above 1.008 with targets at 1.0842 and 1.0864.
