Early in the European session, the EUR/USD pair is trading around the 2/8 Murray and within the uptrend channel formed since January 18. The H4 chart shows a negative bias, and the euro is likely to continue falling in the coming days.

The euro reached its psychological level of 1.20, exceeding that level to reach the 7/8 Murray around 1.2085. The euro encountered strong resistance below 1.21 and is now falling. The technical correction is likely to continue in the coming days and could reach the lower band of the uptrend channel around 1.1876.

Given that the euro is trading within the bullish channel, yesterday during the American session, EUR/USD reached 1.19. From that level, it made a technical rebound, which leads us to the conclusion that the euro could continue its rise in the coming hours.

If the price consolidates above the 6/8 Murray located at 1.1962, then it could return to the psychological level of 1.20 and finally reach the 7/8 Murray at 1.2085.

A consolidation below Murray's 6/8 could mean a continuation of the downward movement and, in turn, a sharp break in the upward trend channel, which could see the euro return to the 200 EMA located at 1.1729.

The Eagle indicator is showing a negative signal, so we expect the euro to resume its technical correction in the coming hours after a technical rebound.