Early in the American session, the euro is trading around 1.0735 under strong bearish pressure. The euro has reached oversold levels, showing signs of exhaustion.
The opening of trading this week left a GAP in the euro at about 1.0803. It is likely that after the Euro bounces in the next few hours, it could reach and cover this GAP and even reach the 200 EMA located at 1.0815.
Currently, the euro is at a key point. If it consolidates above 1.0742 in the next few hours, we could expect a positive outlook for the coming days.
On the contrary, if the euro falls below 1.0742 (4/8 Murray), it could continue its fall and could reach 1.0681 and even drop to 2/8 Murray located at 1.0593.
The eagle indicator reached the oversold zone, showing signs of a further rebound. However, we could wait for confirmation of this rebound if the euro returns and trades above 4/8 Murray. Then, EUR/USD could suggest an opportunity to buy.
Given that the euro is at extremely oversold levels, we should expect a consolidation above 1.0730 in the next few hours. In case this scenario comes true, we will look for opportunities to buy with targets at 1.0760, 1.0785, and 1.0815.
