The EUR/USD pair is trading around 1.1728, rebounding after reaching a low of 1.1646 on Friday. The euro is currently above the 200 EMA and above the 8/8 Murray, which could favor a recovery in the coming hours or even days.
The eagle indicator has reached the oversold zone, so we believe the euro could attempt to reach +1/8 Murray at 1.1840 in the coming days and even the key level of 1.1900.
Conversely, if the euro falls below 1.1714, we can expect a continuation of the bearish cycle. The instrument could reach 7/8 Murray at 1.1596 and even the bottom of the downtrend channel around 1.1540.
A breakout of the downtrend channel formed since September 15 could trigger a new bullish movement for the euro. Thus, we can expect EUR/USD to reach +2/8 Murray at 1.1962 in the short term.
The key level to watch is 1.1700. Above this area, we will look for opportunities to open long positions, but below this area, we will look for opportunities to sell, with a target at the psychological level of 1.1500.
