After a strong push above 1.1680, the euro managed to break out of the downtrend channel formed since June 27 and is likely to undergo a technical correction before resuming its bullish cycle.
The outlook remains bullish for the euro, as it is expected to reach +1/8 of the Murray level at 1.1840 in the coming days. Given this, we will look for opportunities to buy the euro above 1.1671 or, if it consolidates above 8/8 of the Murray level, with targets at 1.1840.
On the other hand, a drop below 1.1670 could change the outlook for the euro, and we could expect a decline toward the 7/8 Murray support level, which coincides with the 200 EMA at 1.1670.
According to the daily chart, the euro is under downward pressure, however, the outlook is positive as the weakness of the US dollar could favor the euro.
