The EUR / USD pair has recovered this week and today on Tuesday it is trading near the top of the downtrend channel above the key barrier of 1.2100. This 4-hour bearish channel will be its immediate resistance, if it fails to break we expect a pullback to the 3/8 Murray support zone.
The rebound in EUR / USD is due to investors' turn towards riskier assets that weigh on the dollar, as well as the downward trend in yield rates in the American debt market, where the benchmark bond rates at 10 -years has fallen towards the 1.14% area from recent highs at the 1.20% level.
The EUR / USD pair in daily charts still remains under downward pressure, this recovery could be considered a correction of the pair, only if it manages to break the EMA of 200 in 4-hours charts. A further upward movement could be expected. However, while the pair is trading below the 200 EMA, it is expected to be a significant setback for the pair in the short term.
At this time, the writing is facing the barrier of the downtrend channel, we expect it to continue under downward pressure until the support zone of 1.2085, and 1.2058, both levels are areas of strong support, in this zone we recommend buying again with targets at 1.2155 zone of EMA 200.
Our recommendation is to buy the pair above the 1.2155 support zone, this level is key to maintaining EUR / USD with the current bullish strength, a break below 1.2150, we would expect a drop again to levels of 1.20 and 1.1962.
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Support And Resistance Levels For February 09 - 10, 2021
Resistance (1) 1.2113
Resistance (2) 1.2138
Resistance (3) 1.2179
Support (1) 1.2067
Support (2) 1.2044
Support (3) 1.2021
Trading tip for EUR/USD for February 09 - 10, 2021
Buy if rebound at 1.2085 (3/8 of murray) with take profit at 1.2120 and 1.2155 (EMA 200), stop loss below 1.2050.
Buy if rebound at 1.2055 (strong support) with take profit at 1.2105 and 1.2155 , stop loss below 1.2010.
