Early in the American session, the euro is trading around 1.1590. After a failed breakout of the downtrend channel, EUR/USD fell below the 21 SMA and below the 7/8 Murray, giving it a bearish outlook.
The euro is below the 21 SMA and below the 200 EMA and the 6/8 Murray, which means a strong technical correction could occur in the coming days and could reach the 2/8 Murray around 1.1352.
If the euro consolidates below 1.1650 in the coming days, any technical rebound will be seen as an opportunity to continue selling.
In the coming hours, we can expect a technical rebound above 1.16. Then, we can sell, as EUR/USD is likely to reach 1.1530, 1.1474, and finally 1.1413.
The Eagle indicator is reaching overbought levels, so a technical correction in the euro is more likely in the coming days and will be seen as an opportunity to sell below the 7/8 Murray level.
