Early in the American session, the euro is trading around 1.1714, bouncing off due to strong bearish pressure. It is likely to encounter difficulties as it approaches the 21SMA at 1.1737 or around the top of the downtrend channel at 1.1740.
The euro could fall sharply if it consolidates below the 8/8 Murray at 1.1718. Then, it could reach the bottom of the downtrend channel at 1.1630 and even the 200 EMA at 1.1569.
The Federal Open Market Committee (FOMC) meeting minutes could bring strong volatility to EUR/USD. This could be seen as a signal to sell, as technically we expect the euro to reach the psychological level of 1.1500 in the short term.
On the other hand, a consolidation of the euro above 1.1750 could be seen as a positive sign, and we could wait for it to reach +1/8 of the Murray level at 1.1838.
The eagle indicator has reached the oversold level, so any technical rebound is seen as an opportunity to continue selling in the short term.
