The euro is trading around 1.1679 below the 21 SMA and below the 200 EMA under bearish pressure but showing signs of exhaustion as consolidation is observed around 1.1670.
The euro is moving within a downtrend channel formed since December 19 and has been falling during recent sessions. Consolidation above the 3/8 Murray around 1.1657 is likely in the coming days.
In the coming hours, the euro will find good support around the 3/8 Murray. If EUR/USD reaches the bottom of the downtrend channel around 1.1631. Both levels could be seen as an opportunity to open long positions with a target at the 4/8 Murray around 1.1718.
The Eagle indicator is reaching oversold levels, so EUR/USD will likely remain above 1.1650 and below 1.1718 in the coming days.
A recovery of the euro is expected in the short term, so we will look for opportunities to open positions if EUR/USD reaches the aforementioned support levels.
A decisive break above 1.1750 will enable a bullish outlook for the euro. A decisive break below 1.1630 could signal a decline in the euro. Therefore, EUR/USD could fall to the psychological level of 1.1500.
