Early in the American session, the EUR/USD pair is trading around 1.0847 within the downtrend channel forming since July 17, below the 21 SMA, and above the 200 EMA at 1.0825.
The euro is bouncing around the bottom of the downtrend channel and it could reach 1.0886 (21 SMA) in the next few days. Breaking the downtrend channel, the instrument could reach 1.0925 (3/8 Murray) and even the psychological level of 1.10.
If the euro rebounds around the 200 EMA located at 1.0825 or around 1/8 Murray, ER/USD is expected to continue its rise. Once the price climbs in this area, it will be seen as an opportunity to buy.
On the contrary, the outlook could change below the key level of 1.0803. In the short term, the instrument could reach -1/8 of Murray located at 1.0681, a level that coincides with the prices seen on June 28.
The eagle indicator is approaching the oversold zone. So, we believe that above 1.0803, any technical bounce will be seen as an opportunity to buy.
