The EUR/USD pair, driven by the appetite for risk in the market, extends the upward movement near the 7/8 area of murray, around 1.2146, this level is key, because if it fails to remain above, we could expect a market pullback. Optimism in the euro zone is also due to the probability of additional stimulus in the US, which would weaken the dollar and the euro would be favored.
In the 4-hour chart, we note the 7/8 Murray reversal zone around 1.2143 and, at 1.2165 there is a memory of 2018, an area of very strong resistance, it is likely that in the next few hours there will be a correction of EUR/USD up to the 21-day EMA and the 6/8 Murray.
The eagle indicator is showing an overbought signal, and it is very likely that the pair will make a correction, as part of profit taking, at 1.2040 / 1.2060 the 21-day EMA is located in 4-hour charts, we hope it will be strong enough to to support this pullback, for a new bullish momentum, and to buy this pair again.
Our recommendation is to refrain from buying at these overbought levels, the best we can do is wait until the downward correction has taken place, until the support of approximately 1.2160.
On the contrary, if you want to sell this pair, in 1 hour charts you must sell below 1.2115, in that zone the 21-day EMA is located. Below, the pressure would take it to the 1.2085 and 1.2045 support levels.
Market sentiment for today, Thursday, December 3, is at 71%, compared to yesterday we saw a decrease of 2%, which is likely that this figure will decrease more, if so, we could see a correction of the Euro in the following days.
Trading tip for EUR/USD for December 03 – 04
Sell if the pair breaks below 1.2115, with take profit at 1.2085 (6/8 murray) and 1.2045 (EMA 200), and stop loss above 1.2165.
Buy if the pair rebound around EMA 200 at 1.2045, with take profit at 1.2140 (7/8 murray), stop loss below 1.2005.