Early in the American session, the euro is trading around 1.1580, below the 200 EMA and with a strong technical rebound.

After the sharp drop due to the US Non-Farm Payrolls, the euro reached the bottom of the downtrend channel around 1.1480. From this level, we see that EUR/USD is approaching resistance levels around 7/8 of the Murray, which suggests a technical correction is likely in the coming days.

If the euro breaks and consolidates above 1.1602, we could expect a recovery, and EUR/USD could reach 8/8 of the Murray at 1.1718.

The 61.8% Fibonacci retracement zone is located around 1.1650. This level could act as resistance for the euro. Therefore, we could expect the bearish cycle to resume below this zone.

If the euro finds a barrier below the 7/8 Murray line and below the 200 EMA, this will be seen as an opportunity to sell with a target at the 21 SMA located at 1.1490. EUR/USD could eventually reach the 5/8 Murray level around 1.1352.