EUR/USD is trading around 1.1697 after rebounding from a rejection around 1.1730 during the European session on Tuesday.

The euro is expected to recover above the 200 EMA in the coming hours, then it could reach Murray's 4/8 at 1.1718 and finally, the top of the downtrend channel around 1.1740.

If the technical correction continues, the euro could fall below the 200 EMA, located at 1.1697, towards the 3/8 Murray support, located at 1.1657, and could finally find good support at the bottom of the downtrend channel, around 1.1635.

The Eagle indicator is reaching oversold levels, so any pullback in the euro will be seen as an opportunity to open long positions with a target at 1.1740.

A sharp break above 1.1750 and consolidation above this area could lead to a sustained recovery in the euro, which could reach the 5/8 of Murray at 1.1779 and ultimately reach the 6/8 Murray at 1.1840.