Early in the European session, the euro is trading around 1.1710, below the 21SMA and below the 7/8 Murray line.

The euro, having reached a high of 1.1759 following the US non-farm payrolls announcement, reacted as a technical correction, and it is now likely that the euro could continue to fall this week, reaching the 7/8 Murray line at 1.1657.

The US data was negative, as the NFP statistical report for August showed only 22,000 jobs, compared to the expected figure of 75,000.

This US data notably weakened the US currency, so the euro took advantage of it. However, a technical correction is likely this week as part of profit-taking, and it could also be seen as an opportunity for a technical correction to buy the euro back at lower price levels.

If the euro consolidates below the 8/8 Murray level, this will be seen as a selling opportunity in the coming hours, with targets at the bottom of the uptrend channel around 1.1650.

If the euro breaks above 1.1720, we could expect the bullish cycle to resume and EUR/USD will potentially reach the +1/8 Murray level at 1.1779.

The Eagle indicator suggests that the euro could fall in the coming days as overbought levels are observed.