Early in the American session, the euro is trading around 1.0796, above the 21 SMA, and below the downtrend channel forming on the H1 chart since October 10th.
The latest trading shows strong bearish pressure. However, after having reached a low of 1.0760, the euro is showing a recovery.
If a sharp break above the downtrend channel occurs in the next few hours, this could be seen as an opportunity to buy with the target at 4/8 Murray located at 1.0986.
If the euro falls below the 21 located at 1.0887, it could reach 0/8Murray located at 1.0742, a key level and an important support since the euro would experience a technical rebound in this area.
According to the H1 chart, we can see that the euro is forming a small bullish trend channel. If EUR/USD bounces above the bottom of the trend channel around 1.0780, this move could give an opportunity for a further rise. So, we could expect a sharp break of the downward trend channel, which would confirm the euro's recovery.
US PMIs will be published in the next few hours, which could favor the upward movement of the euro. In turn, we could look for opportunities to buy as long as the price consolidates above 1.0800.
