EUR/USD has been in a bearish bias since the beginning of the week after having left a gap around 1.0570. The instrument is now consolidating below the 21 SMA and below and above 2/8 Murray which represents an important key level.
If the euro consolidates above the psychological level of 1.0500 in the next few hours, we could expect it to resume its bullish cycle and the price could reach 1.0545 and finally, 3/8 of Murray around 1.0620.
A daily close below 2/8 Murray could mean a strong bearish acceleration. So, the instrument could cover the gap left around 1.0410 and even fall to 1/8 Murray located at 1.0376.
On the H4 chart, we can see that the eagle indicator is showing a positive signal. At the same time, we see that the euro is trading within the bullish trend channel. It suggests that we could expect a recovery of the euro above 1.0498 in the coming days.
