EUR/USD is trading around 1.1627 within a downtrend channel formed on the H1 chart since early December and is likely to remain under bearish pressure in the coming hours, potentially reaching the 2/8 Murray level around 1.1596.

A sharp breakout and consolidation above the 200 EMA and above the 21 SMA at about 1.1633 could allow us to continue buying the euro. EUR/USD could reach 3/8 Murray around 1.1657.

A sharp breakout of the downtrend channel could give the euro strong momentum, and EUR/USD could reach 4/8 Murray around 1.1718 and finally cover the gap left around 1.1740 in October.

Conversely, a drop below 2/8 Murray could change the euro's direction, and we could expect it to reach the key support of 0/8 Murray around 1.1474.

The Eagle indicator is showing a negative signal, so if a pullback towards 1.1657 occurs, it will be seen as a signal to open short positions in the coming days.