Early in the American session, EUR/USD was trading around 1.0525, below the 21 SMA, and above the Murray 2/8 which represents strong support for the euro.
If the euro consolidates above 1.0565 in the next few hours, the outlook could be positive, but we must remember that the euro is in a consolidation phase. So, there is strong bearish pressure below 1.0620.
In view of this, we could expect the euro to trade within a range between 1.0500 and 1.0620 in the next few days.
On the condition of a drop and consolidation on the H4 chart below 1.0498, the outlook could be strongly negative for the euro. Therefore, EUR/USD could quickly reach 1.0420 and could even accelerate its bearish path to reach 0/8 Murray around 1.0253.
Above 1.0620, the euro could recover some of its losses. The instrument could reach 1.0742 and finally, the 200 EMA around 1.0766 which represents the 61.8% Fibonacci retracement.
