The euro traded around 1.1535, below the 21-day SMA and within the downtrend channel formed on the H1 chart. We believe EUR/USD could continue to fall in the coming days until it reaches the 2/8 Murray level around 1.1474.
On the chart, we can see that the euro is within a primary uptrend channel formed since early March. During Thursday's US session, the instrument has been bouncing off, confirming this support level. Should the price consolidate above the 21 SMA at 1.1540, this could be seen as a buy signal.
If the euro consolidates above 1.1540 in the coming hours, we could expect a recovery, and EUR/USD could reach the 200 EMA around 1. 1559, and a decisive break above the downtrend channel could favor the euro's recovery, potentially reaching 1.1596 and even the top of the uptrend channel around 1.1675.
A decisive break of the main uptrend channel and a consolidation below the psychological level of 1.15 could change the outlook for the euro. Hence, we could expect it to reach the 1/8 Murray level around 1.1350 in the coming days.
The Eagle indicator has reached oversold levels on the H1 chart, so a technical rebound is expected, along with a recovery for the euro.
