EUR/USD is trading around 1.0842, bouncing above the daily support located at 1.0835, after falling below 1.0870 during the European session.
According to the H4 chart, we can see that the euro is trading within a downward trend channel. A technical rebound may occur above 1/8 of Murray around 1.0803 in the next few hours.
If the euro recovers in the next few hours, we could expect it to face the 2/8 Murray resistance zone located around 1.0864. Above this level, the euro could quickly reach the top of the downtrend channel that coincides with 3/8 Murray around 1.0925.
Meanwhile, we can observe that the eagle indicator reached the extremely oversold zone. Therefore, a technical rebound is likely to occur in the next few hours that could be used by traders as an opportunity to buy above 1.0835 or in case there is a technical bounce at 1.0803.
Technically, the euro could have a recovery, but for this, we could look for opportunities to buy only if EUR/USD consolidates above 1.0864 (2/8 Murray - 200 EMA). Then in the short term, the instrument could reach the psychological level of 1.10.
On the contrary, as long as EUR/USD trades below 1.0864, the outlook will always be negative. So, any technical bounce will be seen as an opportunity to sell with the target at 1.07.