The euro is trading around 1.1192 following a strong technical rally since the start of this week's session and may be approaching overbought levels, with the 21-period simple moving average (SMA) acting as dynamic resistance.

If the euro continues to rise in the coming hours, consolidates above the 38.2% Fibonacci level, and reaches the 23.6% Fibonacci level—which also coincides with the Murray 4/8 level—this zone could be considered an opportunity to open short positions, and we could expect the downtrend to resume.

If the euro falls below 1.1200 in the coming hours, we could view this area as an opportunity to sell, with targets at 1.1150, near the lower band of the uptrend channel formed since October 28.

A key point to watch is whether the price reaches the Murray 4/8 level; however, if the current trend persists, the euro faces another resistance level around 1.1250—this area could also offer strong resistance, and we would expect the price to fall below it.

On the other hand, a move toward the 200-period exponential moving average (EMA) at 1.1250 could be considered a clear selling opportunity, as the Eagle indicator is reaching overbought levels. From a technical standpoint, we expect the euro to remain under downward pressure in the coming days.