EUR/USD is trading at about 1.0839, bouncing from the bottom of the downtrend channel. The euro is going through a recovery stage. So, EUR/USD could continue its rise in the coming hours and reach the top of the downtrend channel at about 1.0852.

If the euro consolidates above 1.0860 in the next few hours, we could expect it to break 1.0879. The price could even reach the May 15 high of around 1.0900.

In case the euro finds a strong rejection at the top of the downtrend channel, the bearish cycle could resume and will be seen as a signal to sell below 1.0864 with the target at 1.0789.

If bearish pressure prevails, the euro could fall below the 200 EMA located at 1.0781. Therefore, EUR/USD could reach the low of May 8 around 1.0725.

Meanwhile, we should pay attention to the 1.0856 area in the coming hours. If the instrument settles above this level, it will be seen as a continuation of the bullish movement. Below, the euro could resume the bearish cycle.