Before the opening of the Asian session, the EUR/USD pair is trading above the 21 SMA and above the 6/8 Murray, which acts as strong support. The bias is still bullish as we notice the formation of a bullish pennant pattern.
The dovish comment from FOMC Chairman Jerome Powell despite the improved economic outlook affected the US dollar. It gave EUR/USD the boost to break the 1.2085 resistance.
However, yesterday we noticed that USDX was rebounding from its low at 90.36 supported by the strong rally observed in the yields of US Treasuries thanks to the optimistic data from the US. Yesterday US Treasuries rose by 2% to 1,649%.
On a technical level, we note that EUR/USD could be preparing for a strong bullish move to 8/8 Murray to 1.2207.
However, it should break the 1.2150 resistance and consolidate above 7/8 Murray, for a move up to the 1.2207 resistance.
If he EUR/USD makes a technical bounce above the 21 SMA around 1.2085, which coincides with 6/8 of Murray as strong support, it will give a boost to the euro to break the 1.2150 level and make new highs.
Conversely, a break below the strong support at 1.2085, and the break of the uptrend channel could change the trend to the support at 1.2000 psychological level.
Our recommendation is to buy the EUR / USD pair if it bounces around 1.2085 and if it trades above 1.2125.
Support and Resistance Levels For April 30, 2021
Resistance (1) 1.2149
Resistance (2) 1.2169
Resistance (3) 1.2188
Support (1) 1.2093
Support (2) 1.2073
Support (3) 1.2043
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Trading tip for EUR/USD for April 30, 2021
Buy above 1.2125 ( Bullish pennant pattern) with take profit at 1.2188 and 1.2207 (8/8), stop loss below 1.2085.
Buy if rebound at 1.2085 ( 6/8 of murray) with take profit at 1.2145 and 1.2207 (8/8), stop loss below 1.2052.
