Early in the American session, the EUR/USD pair is trading around 1.1178, below the 200 EMA, and below the 21 SMA under bearish pressure.

Having reached the 1.1270 area, the euro failed to break out of the downtrend channel, and we have been seeing a technical correction since then.

The EUR/USD pair is likely to continue falling in the coming hours and could even reach the 5/8 Murray around 1.0986 next week.

On the other hand, if the euro consolidates above the 200 EMA and above the 21 SMA, it could be preparing for a new bullish cycle.

For this positive scenario, we should expect confirmation and a break above the downtrend channel and consolidation above the 6/8 Murray. Then, the euro could reach the 7/8 Murray around 1.1474 and even the psychological level of 1.15.

The outlook remains bearish for the euro, so we will look for shorting opportunities at current price levels or below 1.1230, where the 6/8 Murray is located, with targets at 1.1103 and the psychological level of 1.10.