Early in the American session, the euro is trading around 1.1752, bouncing back after finding good support around 1.1718.

Last week, the euro sharply broke out of the uptrend channel and is now showing signs of exhaustion. We believe the euro could fall to the 200 EMA at 1.1636 in the coming days.

A consolidation below the 21SMA at 1.1750 could fill the gap left around 1.1735. If bearish pressure prevails, we could expect a drop to reach the 8/8 Murray at 1.1718 and eventually reach the 200EMA around 1.1636.

Conversely, if the euro consolidates above 1.1750 in the coming days, it could continue to recover and is likely to reach +1/8 Murray at 1.1840.

According to the H4 chart, the euro is likely to undergo a strong technical correction in the coming days, as recent trading since July 21 is showing signs of exhaustion. A head-and-shoulders pattern is likely forming, which means a strong technical correction could occur in the coming days.

Key support levels to watch for the euro are 1.1750, 1.1718, and finally 1.1636. Key resistance levels are 1.1780, 1.1815, and 1.1840.