Early in the American session, the euro (EUR/USD) was trading around 1.0690 below the 21 SMA and within the downtrend channel formed on November 3.
In the H4 chart, we can see that during the European session, the euro tried to break the 1.07-1.0715 zone. However, it failed to consolidate above the 21 SMA and since then we have observed a continuation of the bearish movement that could reach the 200 EMA located at 1.0631.
On the other hand, if the euro consolidates above 1.0715, we could expect it to continue to rise and reach 8/8 Murray at 1.0742 and it could even reach +1/8 Murray at 1.0864.
According to the 4-hour chart, the euro is overbought, which is a sign that in the coming days, it could continue to decline.
The downward pressure could intensify if the euro breaks below 7/8 Murray and below the 200 EMA (1.0631). Then, it could reach the psychological level of 1.05 and even 6/8 Murray (1.0498).
Our trading plan is to sell the euro below 1.0715 with targets at 1.0631. The eagle indicator is giving a negative signal. So, as long as it trades below 1.0742 (8/8 Murray), it will be seen as an opportunity to sell.