Early in the American session, the EUR/USD pair is trading around 1.0786, below the 21SMA. The instrument is following a downtrend.
Having reached a high of 1.0940, EUR/USD has been declining for several consecutive sessions. The euro could continue its fall, so we could look for opportunities to sell below the 21SMA with a target at the 200EMA located at 1.0690.
On the other hand, if the euro consolidates above 1.0810, we could expect a technical rebound towards 1.0864. EUR/USD could even reach its high of 1.0942.
According to the H4 chart, the euro appears oversold, and we believe that if EUR/USD finds strong support around the 8/8 Murray level at 1.0742 or 1.0690, it will be seen as a buying opportunity.
The euro is within the downtrend channel formed on March 18. If the instrument continues to trade within this channel, the price may decline lower in the coming days.
Only a breakout of the bearish channel and consolidation above 1.0810 could change the euro's course, and we could expect a recovery.
