Early in the American session, the EUR/USD pair was trading around 1.0938, breaking the downtrend channel, above 3/8 Murray, and above the 21 SMA.
On the H1 chart, we can see a recovery of the euro and the formation of a technical reversal pattern. Therefore, if EUR/USD consolidates above 1.0925 in the next few days, we could expect it to reach the psychological level of 1.10.
If the euro falls below 3/8 Murray, we could expect it to return to the levels of October 10 around 1.0899. Even if the instrument breaks this level, it could fall to 2/8 Murray at 1.0864.
Given that the euro is showing an oversold signal on the H4 chart, we expect a recovery in the next few days. So, EUR/USD could even reach 5/8 of Murray around 1.1047.
Our outlook will be positive above 1.0925. So, we will look to buy at current price levels, with the target at 1.1045. The Eagle indicator is giving a positive signal which supports our bullish strategy.
