Early in the American session, the euro is trading below the 21 SMA and below the pivot point of 4/8 Murray which is putting bearish pressure on the euro.

On the H4 chart, we can see that the euro has been trading within the bullish trend channel since the beginning of February. On several occasions, the EUR/USD pair has been testing this channel which has served as a point to find a good technical bounce.

During the European session, EUR/USD hit the low of 1.0458, and since then, it has had a technical bounce. However, there is strong bearish pressure below the 21 SMA. It could mean a bearish move for the euro in the coming days in case the price breaks below the trend channel.

On the H4 chart, we can see the formation of a double-top pattern, which also indicates that the euro might face a fall in the coming days, but for that, we should wait for confirmation only if the price trades below 1.0470.

The Eagle Indicator has been showing a negative divergence since February 20th which means that we could expect a sharp drop in the euro if EUR/USD consolidates below the 200 EMA located at 1.0427. The instrument could eventually reach 1/8 Murray located at 1.0314.

Conversely, if the EUR/USD consolidates above 1.0490, it will be seen as an opportunity to continue buying. Therefore, below 4/8 Murray any technical bounce will be seen as a bearish signal.