Early in the American session, the euro is trading around 1.0791, undergoing a technical correction after reaching the top of the downtrend channel formed on March 14 and showing signs of exhaustion.
The euro is struggling to continue rising and is now trading below the 21SMA, which suggests that the technical correction could continue in the coming hours. Thus, EUR/USD could reach the 8/8 Murray at 1.0742. Once this important support is broken, the instrument could fall to the 200 EMA around 1.0711 and even touch the bottom of the downtrend channel around 1.0650.
On the other hand, if the euro breaks and consolidates above 1.0815, the outlook could be positive, and the euro could return to its highs of 1.0940 and even reach the psychological level of 1.1000.
We expect the euro to continue its decline in the coming days, as technical levels suggest it will close the gap it left on February 28 at around 1.0365.
