The euro was trading around 1.1219, showing a strong uptrend that began after it hit its low on October 28, around 1.1105.
The euro may struggle to break above the Murray 4/8 level, as this area represents strong resistance; however, if the euro consolidates above 1.1230 in the coming hours, it could continue to rise until it reaches the strong resistance at the 200-day EMA, around 1.1268.
If the euro encounters strong resistance and falls below 1.1230 or 1.1268, this could be seen as an opportunity to open short positions in anticipation of a decline to 1.1185. If the price breaks below the downtrend channel, the decline is likely to continue, and the price could retest 1.1130, around the 61.8% Fibonacci retracement level.
If the euro undergoes a technical correction toward 1.1180, an opportunity to resume its uptrend could arise, and we could buy with targets at 1.1270 and 1.1375.
Below the Murray 4/8 level and below the 200 EMA, downward pressure on the euro will continue, so we must be very cautious, as EUR/USD could pull back below this zone in the coming days.
The Eagle indicator is approaching oversold levels, so technically, the euro is likely to experience a series of downward movements in the coming days. The key will be to watch Murray's 4/8 level around 1.1230.
