Early in the American session, the EUR/USD pair is trading around 1.1335, below the downtrend channel formed on May 20 and showing signs of exhaustion.

The euro could resume its bullish cycle in the coming hours. However, there is strong resistance around 1.1352 and around 1.1390. Both levels could act as a barrier to the euro, and after a technical rebound, it could resume its bearish cycle.

If the euro falls below 1.1319, we could expect it to continue falling, with targets at the 200 EMA around 1.1248, and it could even reach the bottom of the downtrend channel around 1.1210.

The Eagle indicator is showing a negative signal, so any technical rebound will be seen as a signal to sell. The indicator also suggests that EUR/USD could reach the psychological level of 1.1000 in the short term.

We could expect a recovery for the euro if it consolidates above 1.1400. Hence, the outlook could be positive, and EUR/USD could reach the Murray 6/8 at 1.1476 and even surpass its yearly high.