EUR/USD is trading around 1.1067 breaking the downtrend channel forming since August 27. If the pair consolidates above the 21 SMA and above 5/8 Murray in the next few hours, it suggests that the uptrend could prevail. The key is to pay attention to the price zone of 1.1045.
In case the euro makes a technical bounce around 1.1045 in the next few hours and the price remains above this area, it could be seen as a signal to buy since technically, we are observing that there is a positive signal on the H1 chart which could be seen as an opportunity to buy.
The euro could find strong resistance around 200 EMA or around 6/8 Murray (1.1108). So, we believe this area could be a barrier for the euro. If it fails to break above it, we could see a resumption of the bearish cycle.
If EUR/USD falls below 5/8 Murray, the bearish move is likely to accelerate and the instrument could reach the psychological level of 1.10 and eventually 4/8 Murray around 1.0986.
