The euro is trading around 1.1772, below 5/8 Murray and below the 21 SMA, with low volume and within a downtrend channel formed since December 23.

If the euro consolidates below 1.1780 in the coming hours, the outlook could remain negative, and we expect it to reach the 200 EMA around 1.1685 in the coming days.

On the contrary, if the euro breaks and consolidates above the downtrend channel, we could expect a continuation of the main trend, and EUR/USD could reach 6/8 Murray around 1.1840.

The Eagle indicator is showing a positive signal, but we must wait for a break above 1.1780. If EUR/USD consolidates above this zone, it will be seen as an option to take long positions.

Our outlook remains bearish for the coming hours. Hence, at current price levels, we could look for opportunities to sell, with targets at 1.1745, the 4/8 Murray at 1.1718, and finally around 1.1680.

Over the last few weeks, the euro has consolidated around 1.1740 - 1.1770, and strong overbought levels are observed. It is likely that there will be a technical correction in the coming days, and the euro could even reach the psychological level of 1.1500.