Early in the European session, the euro is trading around 1.1607, rebounding after reaching the 200 EMA around 1.1590, and the price is now above the 7/8 Murray line.

On the H4 chart, we can see that the euro is within the bearish trend channel formed on June 27th. After a long technical correction, a rebound is expected towards the 21 SMA area located at 1.1670. EUR/USD could even reach the top of the bearish trend channel around 1.1700.

If the euro breaks sharply below the 200 EMA and consolidates below this area, the odds are that the bearish acceleration could continue and the instrument could reach the 6/8 Murray line at 1.1474.

If the euro sharply breaks out of the uptrend channel and consolidates above 1.1700, the outlook for the euro could be positive. Thus, we would expect a recovery that could push EUR/USD to reach 8/8 Murray at 1.1718 and eventually +1/8 Murray at around 1.1840.

The eagle indicator is reaching oversold levels, making a technical rebound more likely in the coming days. Therefore, looking at the chart, the price suggests a technical rebound in the coming days.

Our trading plan for the next few hours is to buy the euro only if the price consolidates above the 200 EMA with a target at 1.1700.