At the beginiing of the US trade, the EUR/USD pair was trading above the 6/8 Murray support and above the 21 SMA, within a downtrend channel on the one-hour chart. The decline in the single currency occured in the face of a continuation of the dollar's rally throughout the market.
In the European session, the price reached 1.2050, the lowest level in a week after failing to stay above 1.2100.
The US dollar index, also had a barrier at the 200 EMA that is preventing it from a further rise. Traders can take advantage from the situation and make new purchases above 1.2085, a key support level of 6/8 of murray.
The bias remains bearish for the EUR/USD pair. It should consolidate above 1.2145, for a further bullish momentum to the 8/8 murray zone around 1.2207.
As long as the EUR/USD pair is trading below 1.2145, there will be strong downward pressure. Thus, traders cpould sell below this resistance zone.
On the other hand, the psychological level of 1.20 also represents a strong immediate support for the market, which coincides with the 5/8 of Murray. At this level we recommend buying since the line of the 1-hour downtrend channel converges there.
The technical reading of the eagle indicator on the one-hour charts shows that the pair is in the oversold zone, and there could be a bullish bounce to 1.2122 or 1.2145.
Support and Resistance Levels for May 13 - 14, 2021
Resistance (3) 1.2181
Resistance (2) 1.2123
Resistance (1) 1.2106
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Support (1) 1.2042
Support (2) 1.2007
Support (3) 1.1975
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Trading tip for EUR/USD for May 13 - 14, 2021
Sell, if there is a pullback to 1.2122 (reversal zone and 7/8) with take profit at 1.2085 (6/8), and 1.2030, and stop loss above 1.2150.
Buy, if there is a rebound to 1.2030 (5/8 of murray) with take profit at 1.2088 (6/8), and stop loss below 1.2000.
