The euro is trading around 1.1466, rebounding after hitting a low of 1.1416—a level that coincided with the lower band of the downtrend channel formed since May and also aligned with the -1/8 Murray level. We believe EUR/USD could continue its rebound in the coming days until it reaches the strong resistance at the psychological level of 1.15.
If the euro encounters strong resistance around the 0/8 Murray line near 1.1474 in the coming hours, we could expect it to retreat toward the 1.1413 level (the -1/8 Murray line), and this area could, in turn, form a double bottom pattern.
Given that the euro is under downward pressure, we could open short positions below the 0/8 Murray level, expecting the euro to consolidate around 1.1413 in the coming days.
If EUR/USD reaches the psychological level of 1.15 around this area, it could be viewed as a zone to open short positions, with targets at 1.1413.
The Eagle indicator is showing a negative signal, so we believe the euro could continue to fall in the coming days; however, EUR/USD could enter oversold territory and experience a strong technical rebound.