EUR/USD is trading around 1.1564, below the 7/8 Murray level and below the 21SMA. The euro suffered a strong technical correction below 1.1650 and is likely to continue falling in the coming days, reaching the 6/8 Murray level around 1.1474.
An important fact to keep in mind is that the euro has left a gap around 1.1730 and is likely to reach this area in the coming days. We could also expect a breakout of the downtrend channel, so we should be vigilant in planning long position opportunities.
The Eagle indicator is showing oversold levels on the H4 chart, so it is likely that the euro will rebound above 1.1530 or above the psychological level of 1.1500 in the coming days.
A price consolidation above the 7/8 Murray level and above the 21 SMA will be seen as an opportunity to enter long positions. In this scenario, this would signal a recovery in the EUR/USD pair, which in turn is expected to reach the 8/8 Murray level at 1.1718 and even +1/8 Murray level at 1.1840.
