The euro is trading around 1.1530 within a downtrend channel that has been forming since early August. EUR/USD rebounded during Thursday's US trading session, but it may struggle to continue rising as it faces strong weekly resistance.
From a technical viewpoint, the euro could encounter strong resistance near the upper band of the downtrend channel, at 1.1550.
If EUR/USD reaches this resistance in the coming hours, it could present an opportunity to open short positions in the coming days, with downward targets at the 200-day EMA, around 1.1487. Ultimately, the euro could find strong support near the 6/8 Murray level, at 1.1474.
The outlook for the euro remains bearish over the next few days, so we will look for opportunities to sell at 1.1570, as this area technically represents strong resistance that coincides with the 200-day EMA on the daily chart.
