The euro is trading around 1.1521, below the 200-period moving average and the Murray 5/8 level, showing signs of exhaustion in its upward momentum. After hitting strong resistance at the 200-period EMA—which is acting as a ceiling—it is pulling back, though it could still consolidate below this zone in the coming days.
If, in the coming hours, the euro attempts to break above 1.1564—where the 200-period moving average is located—it could reach the Murray 6/8 level, around 1.1596. This level is key for the euro; it could act as strong resistance and be considered an opportunity to open short positions.
A drop below the 5/8 Murray level in the coming hours could keep the euro under downward pressure, and it could reach the 4/8 Murray level, around 1.1474, and ultimately test the 21-day simple moving average (SMA), around 1.1457.
The Eagle indicator has reached overbought levels; therefore, if a pullback occurs in the coming hours toward the 1.1555–1.1564 zone, it will be viewed as an opportunity to open short positions.
Our outlook will remain bearish for the coming days, and we expect EUR/USD to continue falling until it reaches the Murray 3/8 level, around 1.1413.
