Early in the American session, EUR/USD is trading around 1.0964 inside a downtrend channel formed since July 31.
The pair is located below the 21 SMA and the 200 EMA.
The euro has formed a double bottom around 1.0952 and a recovery is expected in the next few hours to enable the instrument to reach 1.0984 and 1.1051 (200 EMA).
A sharp break above the 4/8 Murray and above the 21 SMA and also a close above this level on the 1-hour chart could accelerate the upward movement of the euro. Hence, EUR/USD could reach 5/8 Murray at 1.1047 and finally, 6/8 of Murray at 1.1108.
Conversely, a close below 1.0950 on the 1-hour chart could accelerate its move lower. So, the price could reach 1.0925 and even the strong support of 2/8 Murray at 1.0864.
Negative PMIs from the Eurozone keep EURUSD under bearish pressure. However, the last drop on July 27 gives us an encouragement of a probable technical rebound and the instrument could reach the 1.1108 level.
The key for the next few hours is to buy only if EUR/USD trades above 1.0950 with targets of 1.0984 and 1.1051.
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