The euro was trading around 1.1181, consolidating above the 21-period simple moving average (SMA), and a technical rebound could be expected in this area. In this case, the EUR/USD pair could retest the Murray 4/8 level, around 1.1230, or even reach the upper band of the downtrend channel that has formed since early October.
If the euro falls below 1.1177, the downtrend could continue, and it could retest the Murray 3/8 level, around 1.1108.
Since the Eagle indicator is showing a negative signal, if the price moves toward the Murray 4/8 level or toward the 200 EMA, around 1.1269, this could be considered a selling opportunity with a target at 1.1108.
The euro could trade within this downtrend channel over the next few days. Therefore, there could be strong downward pressure below the 200-day moving average, and we will continue to buy above the Murray 3/8 level.
The turning point for an upward move in the euro could be a consolidation above the Murray 4/8 level and above the 200-day EMA. In that case, we could expect the euro to reach the Murray 5/8 level and, ultimately, the Murray 6/8 level, around 1.1474.
