The EUR / USD pair, in 4-hour charts, is trading above 2/8 murray and below the SMA of 21. The bearish bias still prevails as there is a downtrend channel that exerts pressure on the Euro and could lead it again to the low of 1.1837.
Tomorrow in the American session, non-farm payrolls are expected to have increased by around 700,000. If this data is favorable for the US dollar. So, the euro is likely to fall to the level of 1.1779, the 1/8 murray area.
Today on Thursday, the Euro found strong support in the 2/8 murray zone If you look at the chart, you will notice that on June 18 it also bounced above this zone.
If the 1.1840 level acts as a strong bottom, the Euro could have strength and break the top of the bearish channel of 1.1890 if it consolidates above the SMA of 21 with targets at 1.1962 (4/8 of murray).
The recovery that the EUR / USD is having serves to mitigate the downward pressure. The eagle indicator is in the overbought zone, which could mean that there could be a downward movement in the next few hours as long as the price remains below the SMA of 21 (1.1890).
The 4-hour chart is still showing a negative bias for the euro. A pullback below 1.1840 (2/8) would once again leave the euro vulnerable to further declines, with support at 1.1800 and then 1.1779 (1/8).
A firm bounce above 1.1901 (3/8) would terminate the downward bias as EUR / USD will break the bearish channel and the SMA of 21 and could scale to the 1.2085 level of the EMA 200 and 6/8 of murray.
Support and Resistance Levels for July 01 - 02, 2021
Resistance (3) 1.1956
Resistance (2) 1.1932
Resistance (1) 1.1892
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Support (1) 1.1840
Support (2) 1.1828
Support (3) 1.1804
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Trading tip for EUR/USD for July 01 - 02, 2021
Buy if rebound 2/8 of murray 1.1840 with take profit at 1.1890 (SMA 21) and 1.1962 (4/8), stop loss below 1.1765.
Buy above 1.1901 (3/8) with take profit at 1.1962 (4/8), stop loss below 1.1870.
