Yesterday after Jerome Powell's speech, EUR / USD has fallen sharply towards the support levels of 1.1962 and is now above Murray's -1/8 located at 1.1901, this level is a strong support, which could give it a technical rebound to the Euro.
The fall of the EUR / USD is based on the strength of the dollar, whose USDX index has just risen to 92.01, its highest level since last December 1 also the yields of US 10-year bonds have reached 1.58% today, its highest level in a year, which has added more bullish strength to the US Dollar.
The relevant data in 1 hour will be the US NFP employment data for the month of February, the result of which is expected in 182,000 new jobs created. A disappointment or a higher than expected figure could move the dollar strongly.
On a technical level, EUR / USD, on the 4-hour charts, is trading within a downtrend channel below the 21 SMA and below the 200 EMA, and above Murray's -1/8 support located at 1.1901.
We wait for the US data which will signal the next movement of the pair, if the Euro makes a rebound at 1.1901, it will be a good point to buy with targets at 1.1962 (Murray 0/8) and higher in the SMA of 21 at 1.2023.
Our recommendation is to wait for a bounce at 1.1901, and buy the EUR / USD; since the eagle indicator is in the oversold zone and a technical rebound is imminent in the next few hours.
Support And Resistance Levels For March 05 - 08, 2021
Resistance (1) 1.1996
Resistance (2) 1.2031
Resistance (3) 1.2088
Support (1) 1.1891
Support (2) 1.1827
Support (3) 1.1798
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Trading tip for EUR/USD for March 05 - 08, 2021
Buy if rebound at 1.1901 (-1/8 of murray and strong support) with take profit at 1.1962 and 1.2023, stop loss below 1.1865.
Sell if pullback at 1.2023 (SMA 21) with take profit at 1.1962 and 1.1910, stop loss above 1.2055.
