Early in the American session, the euro is trading around 1.0732, bouncing after having reached the bottom of the downtrend channel formed on May 17 and showing oversold signs.
The euro could rebound and resume its bullish cycle if EUR/USD consolidates above 1.0715, where the first weekly support is located. Additionally, if the euro reaches 1.0742 where the 4/8 Murray is located, it could favor the bullish momentum and the instrument could reach 5/8 Murray at 1.0803.
At the opening of negotiations this week, the euro left a GAP at about 1.0800. This fact could also encourage a recovery of the euro. Before a further fall, EUR/USD will likely make a technical rebound which could cover this GAP.
If the euro continues its decline, we should expect a consolidation below W_S1 (1.0715). Then, the price could reach 3/8 Murray located at 1.0681.
Since June 10, the eagle indicator has reached the oversold zone. This gives us a positive signal for the euro, but we should expect EUR/USD to consolidate above 1.0742. If the downward move is extended, the next support zone at 1.0680 will be seen as a good technical rebound point.
