Early in the American session, EUR/USD was trading around 1.0910, approaching the low reached last week around 1.0900 with strong bearish pressure.
Technically, the euro is oversold on the H1 chart, but on the H4 chart, we see that it is showing a positive divergence. Therefore, if the euro consolidates above 1.9000 or 1.0934 (21 SMA) in the next few days, the outlook could be for a recovery of the pair.
Since the euro is below 21 SMA located at 1.0934, we believe that with any technical bounce below this zone, the euro could continue its fall and reach 2/8 Murray around 1.0864.
A recovery of the EUR in the next few days is only possible if the price consolidates above 1.0935 or if there is a sharp break above 1.0945. Then, EUR/USD could reach 4/8 Murray at 1.0986 and finally, it could reach the 200 EMA around 1.1047.
Since the euro would be forming a technical reversal pattern called a double bottom, we could wait for confirmation above 1.0935 to buy. Otherwise, we could expect the euro to continue its fall towards 2/8 of Murray located at 1.0864.
