EUR/USD is trading around 1.1596, below the 21SMA, and below the 200EMA with a bearish bias. The technical correction is likely to follow in the coming hours.

The euro attempted to break through the top of the downtrend channel, around 1.1650, but was unable to do so. We are seeing a strong technical correction. Therefore, EUR/USD could continue its decline until it reaches the 6/8 Murray located at 1.1474.

If the euro consolidates above 1.1609 in the coming hours, the outlook could be positive, and we could expect it to try again to break through the strong resistance at 1.1650.

If the euro consolidates above 1.1650 in the coming days, we could expect EUR/USD to reach 8/8 Murray located at 1.1718. It could even cover the gap it left around 1.1740.

Given that the Eagle indicator is showing signs of overbought, we could look for opportunities to open short positions below the 200 EMA with targets at 1.1518 and 1.1474.