The euro is trading around 1.1117, below the 21-day simple moving average (SMA), below the 200-day SMA, and within the downtrend channel that has been forming since October 26.

The euro could continue to fall in the coming days if the price breaks below the low of 1.1108—around the Murray 3/8 level. EUR/USD could reach the lower band of the downtrend channel at 1.1035. If the downward momentum persists, the euro could reach the psychological level of 1.10 and, ultimately, find strong support around the Murray 2/8 level at 1.0986.

Since the opening of this week's session, after the euro reached the 200-period exponential moving average (EMA)—which also corresponds to the Murray 4/8 level and has been acting as strong resistance—the price could be expected to reach the support level of 1.1084.

If a technical rebound occurs in the coming hours around 1.1108 and a double bottom pattern shows up, this could be considered a buying opportunity for the euro, and it could reach 1.1174, near the 21-period simple moving average (SMA). Ultimately, EUR/USD could reach the strong combined resistance around the upper band of the bearish channel, the Murray 4/8 level, and the 200-period exponential moving average (EMA).

Since November 9, the Eagle indicator has been signaling a downtrend after reaching the extreme overbought zone, and the price has remained in negative territory. Therefore, a technical rebound above 1.1108 could be considered an opportunity to open short positions.