Early in the American session, the EUR/USD pair is trading around 1.1266, reaching the top of the downtrend channel and showing signs of exhaustion.

During the opening of trading this week, the euro left a gap that is expected to be filled in the coming days. For this, we should expect EUR/USD to fall below 1.1190.

If the price falls from current levels, the instrument could fill the gap it left at 1.1145 and could even reach the bottom of the downtrend channel around 1.1023.

If the euro consolidates above the 21SMA at 1.1290 in the coming days, the outlook could be positive, and we could expect EUR/USD to reach the Murray 7/8 level at 1.1474.

There is strong weekly resistance around 1.1285. Therefore, we expect the euro to weaken below this area and enter a technical correction. This will be seen as an opportunity to sell in the coming hours.

Our trading plan for the coming hours is to sell the euro below the top of the downtrend channel, with targets at 1.1189, and to cover the gap left last week around 1.1150.