The euro is trading around 1.1744 under bearish pressure after an unsuccessful attempt to break out of the downtrend channel. EUR/USD is now trading below the 38- and 200-period moving averages.
The euro could find strong support around the 8/8 Murray level for a recovery. If the price falls below this level, the euro could continue its decline to the bottom of the downtrend channel around 1.1630.
Conversely, if the euro breaks and consolidates above 1.1773, we could expect it to resume its long-term bullish cycle, which could push EUR/USD up to +1/8 Murray level around 1.1840.
The Eagle indicator is showing a negative signal, so we believe the euro could continue its decline to the 7/8 Murray level support around 1.1596.
In the short term, our outlook remains negative for the euro, and it could fall to the psychological level of 1.15.
