EUR/USD is trading around 1.1711, below 4/8 Murray and below the 21 SMA, under some downward pressure, which indicates that it could continue its fall in the coming hours.

However, we can see on the H4 chart that the euro has found good support around 1.1700. This level could give EUR/USD a technical rebound, and the instrument could reach the top of the downtrend channel around 1.1737.

If the euro recovers in the coming hours, it could face strong resistance from the top of the downtrend channel and, in turn, the 21 SMA, which could be seen as an opportunity to enter short positions. The target could be around 1.1740, and at Murray's 3/8 located at 1.1657. The euro could even find good support around the 200 EMA located at 1.1635.

A sharp break of the downtrend channel formed since December 15 and a consolidation above 1.1740 could be seen as a positive sign for the euro. EUR/USD is expected to reach Murray's 5/8 at 1.1779 and even Murray's 6/8 at 1.1840.

The outlook remains negative for the euro, so any technical rebound that occurs in the coming hours could be seen as an opportunity to open short positions in anticipation of reaching the psychological level of 1.1500 in the coming days.