Early in the European session, the euro is trading around 1.1636 under bearish pressure and forming an inverted pennant pattern. If confirmed, EUR/USD could fall to 5/8 Murray at 1.1535 and even reach 4/8 Murray at 1.1474.

If the euro recovers its losses, we could expect it to consolidate above 1.1660, then reach 8/8 Murray at 1.1718 and even reach the top of the uptrend channel around 1.1760.

A sharp break of the uptrend channel formed since early August could signal a change in trend, and we could expect the euro to reach late July price levels around 1.1380.

The eagle indicator is showing a negative signal, so as long as EUR/USD trades below the 8/8 Murray level, any technical rebound will be seen as an opportunity to continue selling.

Key resistance levels are located around 1.1657, 1.1694, and 1.1718. Immediate support levels are located at 1.1630, 1.1608, 1.1596, and finally, the 5/8 Murray level around 1.1535.