Early in the American session, the EUR/USD pair is trading around 1.0829, above the 200 EMA, bouncing after having reached the low of 1.0803, the level that coincided with the bottom of the bearish trend channel. The euro is likely to continue its rise in the next few hours as we observe a candle called PinBar.
Given that the 5/8 Murray area has acted as a good support for the euro on previous occasions in June and July, we believe that if the euro consolidates above this area in the next few hours, we could look for buying opportunities.
If EUR/USD extends its rally, we could buy with targets at 6/8 Murray located at 1.0864 and finally, at 7/8 Murray located at 1.0929.
On the other hand, if a technical rebound occurs towards the 1.0803 area (5/8 Murray), it will be seen as an opportunity to buy. However, we should be careful below this area as the bearish force could accelerate.
The eagle indicator reached the extremely oversold zone on July 29 and is now giving a positive signal. So, we will look for buying opportunities in the coming days as long as EUR/USD remains above 1.0800.
