The euro fell after the release of the US NFP data, which exceeded estimates. Before this data, the euro was trading around 1.1798, reaching the 8/8 Murray zone around 1.1715.
This area, where the 8/8 Murray is located, represents strong support, as the euro has been consolidating during the last week of June, which is now seen as a point to buy.
The euro reached a low of 1.1715 and from this area made a strong technical rebound. We believe that if EUR/USD reaches the 21SMA or the top of the downtrend channel around 1.1795, it will be seen as a signal to sell in the coming days.
The eagle indicator has been giving a negative signal since June 30, so our strategy will remain bearish. As long as the euro settles below 1.1795, we continue to sell the euro and believe it could continue to fall in the coming days.
Therefore, any technical rebound will be seen as a signal to sell as long as the price trades below +1/8 Murray, located at 1.1840.
