Early in the American session, EUR/USD was trading around 1.0845, below 2/8 Murray, and below the 21 SMA showing a bearish signal. According to the H4 chart, it is likely that in the next few hours, the EUR/USD pair will continue its fall until it reaches 1/8 Murray around 1.0803 or around the low of October 16th around 1.0810.
In case the euro bounces above 1.0803, it could be seen as an opportunity to resume buying. In turn, the instrument would form a technical reversal pattern called a double bottom. This pattern would confirm the euro's recovery and we could look for opportunities to buy above 1.0803, with targets at 4/8 Murray around 1.10 or 200 EMA.
On the other hand, if the euro breaks and consolidates above 2/8 Murray, this could mean a recovery of EUR/USD and we could expect it to reach 3/8 Murray around 1.0925 and finally, 4/8 Murray around 1.0986.
The euro could break out of the bearish pressure if the price consolidates above 1.0870 in the coming days. Alternatively, if EUR/USD settles below this zone, the instrument could continue its decline.
