The euro is trading around 1.1136, rebounding after finding strong support around the 3/8 Murray level at 1.1108. The Murray indicator has changed its parameters; as seen in previous charts, this 3/8 Murray zone previously represented the -2/8 Murray level. Once the price broke below this zone, reaching a low of 1.1105, it has now become an important support zone.
The euro is likely to continue rebounding in the coming days until it reaches the Murray 4/8 pivot point or even the 200-day moving average, around 1.1279.
Since the euro is recovering above 1.1108, we could view this area as an opportunity to continue buying. If a technical rally toward the 3/8 Murray level occurs in the coming hours, we could also buy, as a triple bottom pattern is visible, giving us hope that the euro will experience a significant recovery in the coming days. EUR/USD could even reach the next resistance level at the 5/8 Murray level, around 1.1352.
Our outlook for the euro over the next few hours remains bullish, so we will buy at current price levels of 1.1136 or wait for the price to consolidate above the 21-period simple moving average (SMA), which stands at 1.1153. A decisive break above the downtrend channel formed since October 16 could be a positive signal to continue buying the euro in the coming days.
