The euro is trading at 1.1628, rebounding after hitting the lower band of the downtrend channel at 1.1618. Since then, there has been a strong technical rebound, but it lacked the momentum to sustain the upward move, so we are seeing a new downtrend.
If the euro consolidates above the daily support level around 1.1621 in the coming hours, it could be considered a buying opportunity with a target of 1.1650 and the upper band of the downtrend channel around 1.1663.
After breaking through the 4/8 Murray level, the euro failed to consolidate above this zone and attempted to break through on several occasions but was unable to do so, which triggered a sharp drop from 1.1718 to 1.1618; therefore, we believe the euro could see a recovery in the coming days.
If bearish momentum prevails, the euro has a significant and key support level around the 3/8 Murray line at 1.1596. This level could offer a good opportunity to open long positions and buy during a simple technical rebound if the price consolidates above this zone.
The Eagle indicator has reached oversold levels and is giving a positive signal, so we must be very cautious as a strong technical rebound could occur in the coming days.
