Early in the American session, EUR/USD is trading around 1.0489, trading within the downtrend channel and below 2/8 Murray.

Technically, the euro is under bearish pressure and is expected to trade below the psychological level of 1.0500 in the next few hours.

If this scenario occurs, it is likely that the bearish pressure will resume and the euro could reach 1/8 Murray located at 1.0376.

On the other hand, in case the euro consolidates above 1.0502, the outlook could be positive and we expect EUR/USD to reach the 200 EMA located at 1.0608 and even 3/8 Murray at 1.0620.

If the euro trades below 1.0498 in the next few hours, EUR/USD could resume its downward trend and we expect it to cover the gap around 1.0417 it left on November 21. The instrument could even reach last month's low at 1.0324.

We must pay attention to the 2/8 Murray zone. This level is key and can anticipate the direction to buy or sell. Technically, the euro is showing a positive signal according to the eagle indicator, but for this, we must wait for a confirmation above 1.0502.