The euro is trading around 1.1249, reaching the 200 EMA, which has acted as resistance. On several occasions, EUR/USD has tried to consolidate above this zone but struggled to keep rising.

During Wednesday's US trading session, the euro reached a high of 1.1270 but couldn't sustain above it. We are now seeing a technical correction, so we believe EUR/USD could continue its fall in the coming hours if the price consolidates below the 200 EMA.

On the H4 chart, we can see that the Eagle indicator has reached overbought levels. Technically, the euro faces conditions that could keep it under downward pressure.

Therefore, we will look for opportunities to sell below 1.1261 with targets at 1.1230. Ultimately, we expect EUR/USD to find strong support around the lower band of the uptrend channel at 1.1200.

If the euro reaches the upper band of the uptrend channel around 1.1290, this pullback could be seen as a signal to enter short positions, as we could clearly be facing a technical correction and could sell with targets at 1.12.

A decisive break below the uptrend channel and consolidation below the 21 SMA could change the outlook for the euro, and we could expect it to return to the 3/8 Murray level at 1.1108.