Early in the American session, EUR/USD is trading around 1.0735, rebounding after it had reached the low of 1.0707.
The encouraging news from the United States keeps the euro under bearish pressure. The comments of some policymakers of the Federal Reserve fueled the expectations of a new rise in interest rates in the coming months.
EUR/USD has difficulties to continue rising because it is located within a downtrend channel formed since the beginning of May. The instrument is expected to trade under bearish pressure and it could reach -1/8 Murray located at 1.0620.
On the other hand, in case EUR/USD breaks and consolidates above the 21 SMA located at 1.0754, the price could start a new bullish scenario and could reach 1/8 Murray 1.0864 and finally, the 200 EMA located at 1.0877.
In the next few hours, we expect the euro to continue its fall if it settles below 1.0755. This could be a signal to sell with targets at 1.0700 and 1.0650.