The euro is trading around 1.1606, below the 200 EMA, the 21 SMA, and within the descending trend channel formed in September.
The euro could continue its decline in the coming hours and reach the key support level of the 6/8 Murray indicator at 1.1474. It could even reach the bottom of the descending trend channel around 1.1430.
Should the euro decisively break out of the descending trend channel and consolidate above the 200 EMA, it will be seen as an opportunity to resume buying. We could expect EUR/USD to reach the 8/8 Murray level at 1.1718 and even potentially the +1/8 Murray level at 1.1840.
The Eagle indicator is showing a positive signal, so a good area to buy the euro could be around 1.1590.
If this support proves to be a strong bottom for the euro, we could plan buy positions with a target at 1.1740.
The euro left a gap at the beginning of October that still needs to be filled, so we could look for buying opportunities in the coming hours if the price consolidates above the 7/8 Murray level.
