Early in the American session, EUR/USD is trading around 1.0524 within the uptrend channel forming since November 25th and above 2/8 Murray. It means that a technical bounce could occur in the next few hours if the price continues to consolidate above 1.0500 which could be seen as a buying opportunity.

Last week, the euro reached the 3/8 Murray area breaking above 1.0620 but found strong resistance below the 200 EMA located at 1.0629 which will act as a strong resistance in the future.

Technically, the euro could find good support in the next few hours. In case a technical bounce above 1.0500 occurs, it will be seen as an opportunity to buy the euro.

If the euro breaks sharply below 2/8 Murray, we could expect a change of trend and the euro could fall to cover the gap left at 1.0417 and could even accelerate its fall to 1.0376, the level where it could find good technical support.

Our trading plan for the next few hours is to buy the euro if it consolidates above 1.0498, with targets at 1.0562 and 1.0620.