Early in the European session, the euro is trading around 1.1689, showing some recovery after reaching the bottom of the downtrend channel around 1.1540.

The euro could struggle to continue rising, as the 8/8 Murray level is located around 1.1718, the top of the downtrend channel, which represents a strong barrier for the euro.

If bullish strength prevails and the euro consolidates above 1.1720, the outlook could be positive, and we can expect it to reach +1/8 Murray level at 1.1840. If the euro breaks through this important zone, it could reach the psychological level of 1.2000. Technically, a technical correction is expected for the euro. The key for the price is to remain below 1.1718 with a target at the 21SMA located at 1.1636. EUR/USD could eventually find strong support around the 200EMA located at 1.1600.

The Eagle indicator has been showing oversold signals since July 15. However, the bearish cycle could resume as the euro is showing signs of exhaustion.