Early in the American session, the EUR/USD pair is trading around 1.1123, bouncing after reaching the bottom of the downtrend channel. We observe overbought conditions.
At the opening of this week's trading, EUR/USD opened with a technical gap. In the early hours, the instrument attempted to consolidate above the 6/8 Murray level but failed.
After the euro attempted to recover above 1.1230, it made a sharp decline toward the low of 1.1078. Since then, EUR/USD has been rebounding and is expected to continue recovering in the coming days.
The euro is expected to return to the 1.1250 level (last weekly close) or could reach the top of the downtrend channel around 1.1285.
The gap left by the euro suggests a recovery in the coming days, so we will look for buying opportunities above 1.1080, with targets at 1.1180, 1.1231, and 1.1260.
If the euro breaks the 1.1080 level, we could expect it to reach strong support, which coincides with the psychological level of 1.1000, around the 5/8 Murray line. This area could also serve as a buying point.
