The euro is trading around 1.1656 within the downtrend channel formed since September 12 and reaching resistance levels near the 200 EMA. EUR/USD is likely to encounter a strong rejection zone around 1.1675.

If the euro consolidates above the 200 EMA and sharply breaks the downtrend channel, we could expect it to reach the Murray 8/8 level at 1.1718 and could even cover the gap it left in early October around 1.1740.

Our outlook remains bullish for the euro, so any pullback and technical rebound around the 21 SMA at 1.1610 or around the Murray 7/8 level at 1.1596 could be seen as an opportunity to open long positions with a target at 1.1740.

If the euro falls below 1.1596, we could expect a continuation of the bearish cycle, and in the short term, it could reach the Murray 6/8 level at 1.1476.

The Eagle indicator is showing a positive signal, so any pullback in EUR/USD could be seen as an opportunity to enter long positions.