EUR/USD is rebounding after reaching the 21-day SMA around 1.1490. According to the H4 chart, the euro is overbought, thus a technical correction is likely to occur in the coming days.

If the euro reaches 1.1470, around the 61.8% Fibonacci level, this area could be seen as an opportunity to open long positions with a target at the top of the uptrend channel around 1.1610.

If the euro falls below the 61.8% Fibonacci level, we could expect it to reach the 100% level around 1.1470. Moreover, if the downward pressure persists, we could expect it to reach the 1/8 Murray level around 1.1350.

Given that the euro left a gap on February 27 around 1.1820, it is expected to continue its recovery, hence any pullback could be seen as a signal to buy in the coming days.

A drop below the 2/8 Murray level at 1.1474 could resume EUR/USD's bearish cycle and could be seen as a signal to sell, with targets at 1.1410, 1.1390, and finally around the bottom of the bearish trend channel at 1.1350, which coincides with the 1/8 Murray level.