Early in the American session, the EUR/USD pair is trading around 1.0721 and above the 3/8 Murray. The instrument is bouncing within the downtrend channel after reaching a low of 1.0666 which coincided with the bottom of this channel.

The euro has the possibility of a further rise in the coming days. So, any setback will be seen as an opportunity to buy. The first resistance can be found at 1.0742 (4/8 Murray). Above this level, the euro will likely gain strength and could break 5/8 Murray and the 200 EMA around 1.0800.

With a consolidation above 1.0803 on the daily chart, we could expect a sustained recovery of the euro and EUR/USD could reach 6/8 Murray 1.0864 and finally, the key level of 1.09.

Given that the eagle indicator is showing a positive signal and the euro is oversold, we believe that any pullback in the coming days will be seen as a signal to buy. The key is to keep in mind that if the euro carries on trading above 3/8 Murray, then the bullish outlook could still be valid.