EUR/USD is trading around 1.1722, above 4/8 Murray, approaching a strong resistance zone, which represents the top of the downtrend channel formed since December 17. So, we believe it could encounter strong rejection around 1.1745.

If EUR/USD reaches 1.1740 below this level in the next few hours, it could be seen as an opportunity to open short positions with a target at the 200 EMA around 1.1690. The price could eventually reach the bottom of the downtrend channel around 1.1650.

A definitive break above the downtrend channel and a consolidation above 1.1750 could lead to a recovery in EUR/USD. The instrument could reach the 6/8 Murray at 1.1840 in the coming days.

The Eagle indicator is showing positive divergence, so if a technical correction occurs towards the 3/8 Murray support or towards the 200 EMA located at 1.1690, it will be seen as a good point to open long positions.

If the euro breaks decisively below the 3/8 Murray and consolidates below 1.1650, the outlook could be negative and EUR/USD could reach the psychological level of 1.1500 in the short term.