Early in the American session, EUR/USD is trading around 1.0538, above the 21 SMA, and above the 2/8 Murray which suggests an opportunity to resume buying as technically, we see that the euro is showing a positive signal.

Any pullback above the psychological level of 1.05 will be seen as a bullish signal.

On the H4 chart, we can see that the euro has broken the bearish trend channel. Now the price is above 2/8 Murray. It means that the bullish trend could prevail in the next few days until EUR/USD reaches the 200 EMA located at 1.0730 or climbs up to the 4/8 Murray at 1.0742.

In case the euro falls below 1.0490, the outlook could turn out negative. Therefore, EUR/USD could reach 1/8 Murray located at 1.0376. This level is the key where we could expect a technical bounce to occur.

On the chart, we can see that the euro left a gap at about 1.0420, but it has not been fully covered yet. So, if the euro falls below the psychological level of 1.05, we could expect this gap to be covered.