Early in the American session, the euro is trading around 1.0419, bouncing after reaching the low of 1.0331 that occurred after the Eurozone PMI data surprisingly contracted.

The euro is likely to resume its bearish cycle again and could find good support around 1.0376. From that level, we could look for buying opportunities.

In case the euro rebounds above 1/8 Murray, EUR/USD is expected to again reach the psychological level of 1.0500 or the 21 SMA located at 1.0538.

Technically, the EUR/USD pair has resumed its bearish cycle. This suggests that we could expect a consolidation above 1.0376 in the next few days. Otherwise, we could expect the euro to continue its fall to 0/8 Murray located at 1.0253.

We should keep an eye on the 1/8 Murray level. A technical rebound is expected above this area. Therefore, it could be viewed as a signal to buy.