Early in the American session, EUR/USD is trading around 1.0870 above the 2/8 Murray, below the 21 SMA, and within a symmetrical triangle pattern formed since July 27.
In the European session, the Euro reached the low of 1.0844. Since then, we have observed a recovery of the pair. Currently, it is consolidating above the strong support of 2/8 Murray located at 1.0864.
The pair is under strong bearish pressure and now aims to consolidate at the end of the symmetrical triangle pattern. With a sharp break above the 21 SMA located at 1.0891, the target is determined at the 200 EMA. The top of the bearish channel remains to be confirmed around 1.0980 (dashed lines).
On the contrary, if the symmetrical triangle is broken below the last low of 1.0844, it will be a bearish continuation signal and the instrument could reach 1/8 Murray at 1.0803 and even drop down to the 0/8 Murray support at 1.0742.
Meanwhile we expect the Euro to rally above the 2/8 Murray. If it gains bullish momentum and breaks sharply above 1.0891, that will be our signal to buy with targets at 1.0925 and 1.0972. The Eagle indicator is a positive sign which supports our bullish strategy.
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