Early in the American session, the EUR/USD pair is trading around 1.1378 within the downtrend channel formed on April 17 and showing signs of exhaustion of bullish strength.

A technical correction is likely in the coming hours, and the euro could fall toward the bottom of the trend channel around 1.1150.

The euro has been consolidating for several days around 1.1370. It is likely that consolidation below this area could accelerate the decline, and we could expect EUR/USD to resume its bearish cycle so that the instrument could reach the 6/8 Murray around 1.1250 and even the 200 EMA around 1.1137.

Technically, the EUR/USD pair has a strong likelihood of falling in the short term and could reach the psychological level of 1.1000.

Only consolidation above 1.1450 could change the outlook, and we could expect it to reach 8/8 Murray around 1.1710.