EUR / USD at the opening of the American session is trading at 1.2262 at the time of writing this article, in the European session we saw a correction of the EUR / USD, breaking the SMA of 21, and breaking the uptrend channel of charts daily, you can check it here.
The euro-dollar has found strong resistance at 1.2340, and at 1.2308, it is important to observe these levels, because below these the downward pressure could accelerate the fall to the level of the EMA 200, which is located at 1.2129.
Now, as the EUR / USD is currently trading below the 21 SMA, we should expect a technical bounce or pullback to the level of 1.2290 and 1.2312, these levels will give us a good selling opportunity in the short term.
We have painted a yellow zone on the 4-hour chart of the euro, as long as the pair trades below that level, we will have a selling opportunity, a break above those zones should wait to sell or avoid orders.
Our recommendation is to wait for the 1.2290 - 1.2312 zone, for a bullish exhaustion and sell again with targets at the 1.2130 zone of the 200 EMA.
The market sentiment report for this morning shows a figure of 59% of operators who are selling the EUR / USD pair, this figure in recent days we have seen decrease, which is a sign that there could be a fall in the euro to the 1.2130 area in the short term.
Support And Resistance Levels For January 07-08, 2021
Resistance (1) 1.2312
Resistance (2) 1.2371
Resistance (3) 1.2400
Support (1) 1.2246
Support (2) 1.2202
Support (3) 1.2183
Trading tip for EUR/USD for January 07-08, 2021
Sell bellow 1.2290 ( SMA 21) with take profit at 1.2245 and 1.2146 (7/8), Stop loss above 1.2335.
Sell if pullback 1.2312 (strong resistance), with take profit at 1.2245 and 1.2130 (EMA 200), stop loss above 1.2355.
