The EUR / USD has benefited from falling yields on US debt and also the optimism of the market.
The current rebound of the EUR / USD is being supported by the expectations of the reflation trade, the hopes of a strong recovery in the Eurozone, which in turn is supported by additional fiscal stimulus from the Fed and the ECB.
On the technical level, we note that the EUR / USD in the European session has approached the 1.2150 area, at this level the 200 EMA is located in 4-hour charts, this area has become a strong resistance, if the pair trades below this level we can expect strong downward pressure.
The 21 SMA in 1 hour charts is at 1.2115, this level is key because below this zone we can expect a correction of the EUR / USD to the 21 SMA in 4 hours around 1.2062.
The 21 SMA on a 4 hour chart could give a further bullish momentum for the EUR / USD, awaiting a bounce to the 200 EMA zone around 1.2150.
Our recommendation for today is to sell below 1.2115, or if there is a pullback to the 200 EMA, it will be a good selling opportunity in this area.
Market sentiment for Wednesday shows 58.56% of traders selling the EUR / USD pair which is a sign that there could be a technical bounce above 1.20 in the short term.
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Support And Resistance Levels For February 09 - 10, 2021
Resistance (1) 1.2145
Resistance (2) 1.2179
Resistance (3) 1.2230
Support (1) 1.2068
Support (2) 1.2017
Support (3) 1.1990
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Trading tip for EUR/USD for February 09 - 10, 2021
Sell below 1.2115 (SMA 21) with take profit at 1.2062, stop loss above 1.2150.
Buy if rebound at 1.2062 (SMA 21) with take profit at 1.2105 and 1.2150 , stop loss below 1.2030.
Sell if pullback to 1.2150 (EMA 200) with take profit at 1.2110 and 1.2062, stop loss above 1.2185.
