EUR/USD is trading around 1.1642, below the 21-day SMA and within the downtrend channel, showing a technical bounce and recovering from last week's sharp decline.

The euro could resume its downtrend if it consolidates below 1.1655 and could reach the 3/8 Murray level around 1.1596.

If the technical rebound continues, the euro is expected to reach strong resistance around the upper band of the downtrend channel at 1.1690.

If the euro encounters strong resistance below the 200 EMA or around the upper band of the downtrend channel, this could be considered an opportunity to open short positions with targets at 1.1655 and 1.1596 around the 3/8 Murray level.

The Eagle indicator has reached oversold levels and is showing a slight positive signal. So, we believe that if the euro consolidates above the 3/8 Murray level, it could be considered an opportunity to open long positions with short-term targets around the 4/8 Murray level at 1.1718.

A break above the 200 EMA and above the 4/8 Murray level could change the euro's outlook, and we could expect a recovery up to 1.1840.

As long as the euro trades below 1.1718, any technical rebound will be viewed as an opportunity to enter short positions with medium-term targets around the psychological level of 1.1500.