Early in the American session, EUR/USD is trading around 1.0393 above 1/8 Murray and within the downtrend channel forming since early December.

The euro is showing a slight recovery after having hit the low of 1.0315. Now we see EUR/USD consolidating above 1.0376 which is likely to continue rising in the coming hours and reach 2/8 Murray around the psychological level of 1.0500 and even the 200 EMA located at 1.0563.

On the other hand, in case the euro falls below 1/8 Murray, it is likely to find good support around 1.0310 and might even reach 0/8 Murray located at 1.0253.

Our outlook could be positive only if the euro consolidates above the psychological level of 1.0500. Then, it might reach 3/8 Murray 1.0620 and much higher levels.

As long as the euro is trading within the downtrend channel, any technical bounce will be seen as an opportunity to sell, with a short-term target at around 1.0250.