Early in the American session, the EUR/USD pair is trading around 1.0788, bouncing back after the fall during the European session. The euro technically reached the bottom of the downtrend channel forming since July 16. There could be a technical bounce above this area.
A recovery of the EUR/USD pair is likely to happen in the next few hours. The instrument could reach the 200 EMA located at 1.0828 or even the top of the downtrend channel.
On the other hand, if the euro continues to fall, there is strong support around 4/8 Murray located at 1.0742. This area could be seen as a key point to buy as it is technically seen to be oversold.
In the next few hours, US data will be released and could create strong volatility in EUR/USD. Following the data, traders could grasp an opportunity to buy above 1.0770 with targets at 1.0828 at 1.0864.
The outlook remains positive for the euro because 1.0742 is a key point. We believe that above this area, any technical bounce will be seen as an opportunity to continue buying.
