Early in the American session, the euro is trading around 1.1171, below the 200 EMA and below the 21 SMA.
On the H4 chart, we can see that the euro, after reaching the low of 1.1070, has technically rebounded towards the moving average zone.
However, bearish pressure is likely to resume, as the 200 EMA acts as dynamic resistance, and the euro is likely to resume its bearish cycle.
The euro left a gap around 1.1240 and is likely to be able to fill it in the coming days only if the price consolidates above 1.1187.
If the euro remains below 1.1184, the outlook could be negative, and we could expect it to reach the 1.1064 level again. This could serve to confirm a double bottom pattern, and from there, it could resume its bullish cycle.
Our trading plan for the coming hours is to sell below 1.1184, with targets at 1.1120, 1.1090, and 1.1070.
The eagle indicator is showing a positive signal, so we will look for buying opportunities whenever there is a pullback.
