The euro is trading around 1.1711, below the Murray 4/8 level and under bearish pressure, and below the 21-period SMA, but approaching a key support level around the 200-period EMA.
If the euro remains below the Murray 4/8 level in the coming hours and trades below this zone, we could expect it to continue falling until it finds the important support level of 1.1673. This level could offer a technical rebound for the euro, and we could look for opportunities to open long positions.
Should the euro consolidate above the Murray 4/8 level, we could expect a recovery. However, EUR/USD will need to overcome the strong resistance of the upper band of the descending trend channel around 1.1745 and, in turn, break the 21-period SMA located around 1.1749.
If this bullish scenario occurs and the euro consolidates above 1.1750, we could expect it to return to the strong resistance of the 5/8 Murray level around 1.1840.
Should the bearish force prevail, we could look for opportunities to open short positions. If the euro encounters strong rejection around 1.1749, below the 21-period SMA, we could sell with targets at 1.1673, and we could even expect it to reach the 3/8 Murray level around 1.1596.
The eagle indicator is signalling a positive setup, so traders have an opportunity to buy the euro over the next few hours if the instrument consolidates above 1.1718.