The EUR / USD pair, in 4-hour charts, is trading within an uptrend channel, and below the 21 SMA, pushing down the pair, the key level to watch is 1.2150.
Above the SMA 21, we find the EMA 200 around 1.2185, this level offers another resistance for the EUR / USD, if a pullback occurs towards this level, wait a consolidation to sell below this level.
If the EUR / USD is trading above the 21 SMA, around 1.2150, we recommend buying with 4/8 murray targets around 1.2207.
As long as it continues to trade below 1.2207 and 1.2185 (200 EMA), the bearish market force will continue to pressure the pair.
Our recommendation is to sell below 1.2207 (4/8), because it is a strong resistance zone on the 4-hour chart, and we expect that below this level there will be a drop to the 3/8 murray level. around 1.2085.
Market sentiment for today January 26 shows a figure of 60.15% of operators who are in the EUR / USD selling position, this is a sign that in the short term, we could expect an upward movement to the 1.2207 zone, a level of Murray's 4/8.
Support And Resistance Levels For January 26 - 27, 2021
Resistance (1) 1.2175
Resistance (2) 1.2212
Resistance (3) 1.2242
Support (1) 1.2108
Support (2) 1.2085
Support (3) 1.2041
Trading tip for EUR/USD for January 26-27, 2021
Buy above 1.2150 (SMA 21) with take profit at 1.2185 and 1.2207 (4/8 murray), stop loss below 1.2120.
Sell if pullback at 1.2187 (strong resistance EMA 200) with take profit at 1.2150 and 1.2085 (3/8 of murray), stop loss above 1.2207.
