Before the opening of the American session, the EUR/USD pair is trading below the SMA of 21 and below the strong resistance of 7/8 of Murray, it is losing momentum to the upside. The level of 1.2146 sometimes acted as a strong resistance. This time we believe it is keeping the euro under pressure below this zone.
Yesterday the euro has not been able to consolidate at 1.2170. We saw that the EUR/USD pair has left several wicks on the 4H chart. It means that the pair is exhausting and a bearish move is likely for the next few hours.
If the pair slides below 1.2146, it will signal the bearish bias. It could push EUR/USD lower to the 6/8 Murray support located at 1.2085. This is a key level because previously it also acted as strong resistance. Now we expect it to act as strong support.
At this 6/8 murray level it will be key to watch, you can buy at this level if the pair rebounds could take it back to the 1.2145 resistance as a good target.
The technical reading of the eagle indicator is giving a bearish signal, as it is approaching the 10-point zone, showing that the market could still experience a downward correction for the next few hours.
Our recommendation is to sell below 1.2145 and buy on the technical bounce above 1.2085.
Support and Resistance Levels for May 12 - 13, 2021
Resistance (1) 1.2149
Resistance (2) 1.2176
Resistance (3) 1.2207
Support (1) 1.2106
Support (2) 1.2090
Support (3) 1.2059
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Trading tip for EUR/USD for May 12 - 13, 2021
Sell below 1.2145 (Strong resistance and 7/8) with take profit at 1.2130 and 1.2085 (6/8 of murray), stop loss above 1.2182.
buy if rebound 1.2085 (6/8 of murray) with take profit at 1.2145 (7/8), stop loss below 1.2050.
