Early in the American session, the EUR/USD pair is trading around 1.1707, rebounding after reaching a low of 1.1681 during the first hours of the American session.
According to the H4 chart, the euro is trading within a bearish trend channel formed since the end of July. It is likely that after a technical rebound, the EUR could reach the 1.1753 area or the top of the bearish trend channel. This area will serve as an opportunity to resume sell orders.
The eagle indicator has reached oversold levels, so we believe the euro could recover above 1.1680 in the coming hours and then reach 1.1718, where the 8/8 Murray is located, potentially reaching 1.1770, a strong resistance level, which would provide an opportunity to sell.
Our outlook remains bearish for the euro, so we believe it could reach the psychological level of 1.1500 in the short term. The euro could find good support around the 200 EMA located at 1.1560.
If the euro resumes its bullish cycle, we should expect it to consolidate above 1.1770, then reach +1/8 Murray at 1.1840. Conversely, below this area, the outlook remains negative.
