Early in the American session, the EUR/USD pair is trading around 1.0298, within the downtrend channel forming since the beginning of September and below the 21 SMA located at 1.0342.
The daily chart shows that the euro is facing a possibility of a strong technical rebound, but it should sharply break the downtrend channel and consolidate above 1.0340. In that case, we could expect the euro to reach the 200 EMA located at 1.0698. EUR/USD could even reach 8/8 Murray at 1.0742.
On the other hand, in case the bearish force prevails, we can expect the euro to fall below 1.0342. Then, EUR/USD could reach 1.0131 where 3/8 Murray is located and could mean an important support.
The material has been provided by InstaForex Company - www.instaforex.com
