Early in the American session, the euro was trading around 1.0555 below the 21 SMA located at 1.0569, consolidating around this area between 1.05 and 1.06.
If the euro continues its decline and consolidates below 1.0570 in the next hours, the outlook could remain negative. Thus, we could expect EUR/USD to reach the psychological level of 1.05.
On the contrary, if the euro returns above 1.0570, we could see this as an opportunity to resume buying. The price could reach 1.0620, 1.0742 and finally, the 200 EMA around 1.0776.
On the H4 chart, we can see the euro within the uptrend channel. Therefore, if the price respects this pattern, our trading plan could be to buy around 1.0535 and sell when EUR/USD reaches the top of the uptrend channel as seen on the chart.
In the coming days, the euro could be trading within a range. Hence, we will look for opportunities to buy and sell between 2/8 Murray and 3/8 Murray.