Early in the European session, EUR/USD is trading around 1.0735, below the 0/8 Murray, and below the 200 EMA at the 21 SMA.
On the H-1 chart, we can see that the euro is trading within a slightly bullish trend channel formed since September 6. It is expected to continue its decline in the next few hours if it consolidates below 1.0750 (200 EMA).
The euro could continue its bearish cycle in the coming hours and could reach the 1.0700 level. EUR/USD left a GAP around this area at the opening of this trading week.
With a decline below 1.0715, the instrument is likely to cover the GAP (1.0700). If bearish pressure persists, the price could reach -1/8 Murray located at 1.0681.
Below the 200 EMA located at 1.0750, the euro is expected to continue falling in the coming hours. On September 12, the eagle indicator reached the extremely overbought zone and since then, we observed a technical correction.
On the other hand, if the euro consolidates above 1.0750, it is expected to reach the top of the bullish trend channel around 1.0783 in the next few hours. With a break and consolidation above this area, we could expect a recovery of the euro and it could reach 2/8 Murray at 1.0864 in the short term.
According to the daily chart, the euro is trading below the 200 EMA (1.0830) which suggests a bearish outlook. Therefore, as long as the euro trades below this area, any technical bounce could be seen as an opportunity to sell with targets at 1.05.