The euro is trading around 1.1645, above the 200 EMA and below the 21 SMA, moving within the downtrend channel formed on August 12.

If the euro sharply breaks out of the downtrend channel and consolidates above 1.1670, this could be seen as a bullish signal to buy with targets at 1.1718. EUR/USD could even reach +1/8 Murray at 1.1779.

On the other hand, a break below the 200 EMA at 1.1630 and a consolidation below the 6/8 Murray level could be seen as a clearly bearish signal. We could expect the euro to reach the 4/8 Murray level at 1.1474 in the short term.

The Eagle indicator is showing a negative signal, so we believe the euro will remain under pressure in the coming days. Therefore, any technical rebound will be seen as an opportunity to continue selling.