In the European session, the EUR / USD pair fell to a low of 1.1852, just above the 2/8 murray zone located at 1.1840. This murray level is a strong support that the pair could maintain for a long time.
If the euro's recovery could click into gear with the price remaining above 1.1840 (2/8), then the door could open to a possible rise towards the 200 EMA which is now located at 1.2068. However, there is a small intermediate hurdle at the murray level of 4/8 (1.1962) that acts as a strong resistance.
In the 1-hour chart, we can see the GAP (1.2100) that EUR / USD left just after the Fed's policy announcement last week. The euro is likely to close this GAP in the medium term only if it remains above the 200 EMA.
Finally, EUR / USD is now located above the SMA of 21 in a 1-hour chart, showing a small bullish signal, supported by the eagle indicator that is showing an upward signal.
The market sentiment report for today June 21 shows that 60.39% of traders are buying the EUR / USD pair. This is a sign that downward pressure has not ended yet and there could be more falls of the pair to the 1.17 zone. But first there should be a technical correction that we could take as an opportunity to sell.
Our recommendation to buy above 2/8 murray or SMA of 21 and wait for the 4/8 murray resistance zone to sell again.
Support and Resistance Levels for June 21 – 22, 2021
Resistance (3) 1.1985
Resistance (2) 1.1950
Resistance (1) 1.1907
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Support (1) 1.1829
Support (2) 1.1799
Support (3) 1.1755
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Trading tip for EUR/USD for June 21 - 22, 2021
Sell around 1.1962 (4/8 of murray), with take profit at 1.1901 (3/8) and 1.1840, stop loss above 1.1997.
Buy above 1.1875, (SMA 21), with take profit at 1.1962 (4/8), stop loss below 1.1838.
