The EUR / USD pair before the opening of the American session and before the non-farm payroll data, is trading below the uptrend channel on daily charts, and below the 21 SMA, giving a bearish signal in the short term.
The 1.2349 zone has been a strong resistance, where we saw a formation of a fractal, which coincided with the bearish signal of the eagle indicator, from that level we have been selling the EUR / USD, now, we expect it to find a strong support in the 4/8 of Murray around 1.2207.
Given that we expect volatility in a few hours with the non-farm payroll data, we should wait for the following points, if the pair makes a pull back the 1.2287 zone, only as long as it trades below the daily uptrend line (zone of yellow color), we can sell the EUR / USD.
On the contrary, a technical rebound at 4/8 of murray zone of strong support, around 1.2207, we may have a good buying opportunity with targets up to the 21 SMA, around 1.2290.
A definitive break of the 4/8 of Murray, we expect a drop to the EMA of 200, this level will give good support to the EUR / USD. The eagle indicator is supporting the bearish force in the short term.
Market sentiment for today January 8, shows a figure of 57% of operators who are selling the EUR / USD pair; which means that in the short term we could see a fall of the euro-dollar to the level of the 200 EMA, around 1.2140 - 1.2085.
Support And Resistance Levels For January 08-11, 2021
Resistance (1) 1.2295
Resistance (2) 1.2326
Resistance (3) 1.2367
Support (1) 1.2226
Support (2) 1.2185
Support (3) 1.2150
Trading tip for EUR/USD for January 08-11, 2021
Buy if rebound 4/8 of murray at 1.2207, with take profit at 1.2255 and 1.2295, stop loss below 1.2170.
Sell if pullback to 1.2290 ( SMA 21) with take profit at 1.2207 (4/8) , Stop loss above 1.2330.
