EUR/USD is trading around 1.1596, below the 21 SMA, and below the 7/8 Murray level. The instrument is expected to reach the key support at the 5/8 Murray level around 1.1352.
The euro has significant support around 1.1560. This level has been preventing the price from further decline, so we believe that if a rebound above this area occurs in the next few hours, it could reach 1.1630.
If the euro price decisively breaks the 21 SMA and consolidates above the descending trend channel formed since the beginning of September, we could expect it to reach the 1.1770 area.
The euro has left a gap around 1.1740, so we believe that if the price breaks above 1.1630, we could expect it to reach this level in the coming days.
Conversely, with a drop below 1.1550, EUR/USD could continue the downtrend and potentially reach the 200 EMA around 1.1400.
