Early in the American session, the EUR/USD pair is trading around the parity level of 1.0000.
The pair remains under strong downward pressure and is now trading below 2/8 Murray which has become strong resistance. This resistance will be a strong barrier for the euro and could keep the EUR/USD pair under bearish pressure just in case it breaks below this level.
In the next few hours, it is expected that the euro could continue falling and could reach the bottom of the downtrend channel around 0.9965. It could even reach the low of July 14 at 0.9951, located around the monthly support.
According to the 4-hour chart, we can see that the eagle indicator is showing signs of extreme oversold conditions, and it is likely that the euro could bounce around the area of 0.9950 - 0.9970 in the next few hours.
In the event that the euro/dollar pair turns and breaks the resistance of 2/8 Murray located at 1.009, it could mean a recovery and we should expect a daily close above the 21 SMA located at 1.0027.
The euro is very oversold, and a technical bounce towards the 200 EMA located at 1.0146 is likely in the coming days. In the event that the euro fails to break the downtrend channel, this technical bounce could mean an opportunity to sell around 1.0127 or around 1.0055, with the targets at 1/8 Murray located at 0.9887.
Our trading plan for the next few hours suggests that euro will bounce around the weekly support located at 0.9951 (July 14 low) - 0.9970 from where we can buy with targets at 1.009 and 1.0027 (SMA 21). The eagle indicator supports our bullish strategy. A technical bounce is imminent in the next few hours.