The EUR/USD pair is trading around 1.1544, near the 21-period SMA and within the descending trend channel formed in early May. The euro has been following a bearish bias, and we believe it could continue its fall in the coming days, potentially reaching the 6/8 Murray level around 1.1474.
If the euro continues its downtrend, we could expect it to reach the resistance zone of 1.1596 or around 1.1575, leading to further selling in the coming days with a target at 1.1474.
A consolidation above 1.1545 could be seen as a buying opportunity. Should the upward momentum prevail, we expect the euro to reach the 7/8 Murray level around 1.1596 and potentially the upper band of the descending trend channel around 1.1615.
The Eagle indicator is reaching oversold levels, so we believe the euro could consolidate above 1.15 in the coming days. Given this scenario, a technical bounce above the 6/8 Murray level could be seen as a signal to enter long positions.
Our trading plan for the next few hours is to buy EUR/USD above the 21-period SMA with a target around 1.1634.
