EUR/USD is following a bearish trend after it has broken the key strong support level of 1.0864 which is located at the 2/8 Murray line and coincides with the 200 EMA. The euro is likely to continue falling in the coming hours and could reach the bottom of the downtrend channel.
During the European session, the euro went down. Now we could expect a technical rebound and EUR/USD could reach resistance that was broken around 1.0864. In case 2/8 Murray acts as a barrier and the euro fails to consolidate above this area, we could expect the bearish cycle to resume and it will be seen for us as an opportunity to sell with the target 1.0820.
On the H4 chart, we can see that the euro is trading within a downtrend channel forming since March 6. EUR/USD is likely to continue falling in the coming hours and could find good support around the 1/8 Murray located at 1.0803.
On the other hand, if the euro consolidates above the 200 EMA located at 1.0864, we could look for buying opportunities with the target at the top of the uptrend channel around 1.0925.
Tomorrow during the American session, the Federal Reserve is due to announce its decision on monetary policy. Before this announcement, EUR/USD is likely to trade with low volume as investors are waiting for the decision to be taken. The Fed's announcements will generate strong movement that could reinforce the downtrend or we could expect a change in the trend of the euro.