EUR/USD is trading around 1.1607, rebounding after reaching the 7/8 Murray line around 1.1593. This level is a strong support, as it acted as a solid floor throughout May, providing stability to the euro.
The euro will likely rebound above the 1.16 level in the coming hours and could reach the upper band of the downtrend channel formed since May 29 around 1.1630.
A decisive break of the downtrend channel and consolidation above 1.1621 could be seen as a buying opportunity with targets at the 200 EMA around 1.1660 and ultimately reaching the 8/8 Murray line around 1.1718.
If the euro falls below 1.1590, the bearish bias could continue, and EUR/USD is likely to reach the lower band of the downtrend channel around 1.1570 in the coming days. A technical rebound could occur around this area, but if bearish pressure prevails, it could reach the 6/8 Murray line around 1.1474.
The Eagle indicator is reaching oversold levels, so we believe that the euro could consolidate above 1.16 in the coming days.
Our trading plan for the coming hours is to buy the euro above 1.1593, with targets at 1.1631 and 1.1660.