In a 4-hour chart, The EUR / USD pair, is located at 1.1818. The price is retreating, having reached its peak at 1.1892, but changed its course amid renewed demand for the dollar and the pessimistic sentiment index for the EU that declined to 61.2.
The EUR is below the 21 SMA on 4-hour charts, and is oscillating within a downtrend channel. Yesterday the Euro broke and consolidated below the 2/8 murray support. It has now turned into its immediate resistance and at the same level the SMA of 21 is also located, doubling the force of the top.
If EUR / USD in the next few hours makes a pullback towards this resistance level of 1.1847 (SMA 21 and 2/8), it will be a selling opportunity with targets at 1/8 of a murray around 1.1779.
On the contrary, if the euro gains bullish strength and the US releases disappointing data, a consolidation above 1.1860 could occur. Then it will be a good opportunity to buy with targets at 1.1962. (4/8).
Our recommendation is to watch the key level of 1.1847. Below it, we will continue to sell EUR / USD. Above it, the bias can turn bullish, and it will be time to buy.
Below we leave the support and resistance levels that you should observe, when there is a technical rebound or a stop of the bullish momentum. It will be important to monitor these areas and set our orders of take profit or stop loss.
The technical reading of the eagle indicator is showing a slight bearish bias. A pullback is likely and bearish force will resume in the near term.
Support and Resistance Levels for July 07 - 08, 2021
Resistance (3) 1.1928
Resistance (2) 1.1871
Resistance (1) 1.1847
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Support (1) 1.1799
Support (2) 1.1751
Support (3) 1.1713
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Trading tip for EUR/USD for July 07 - 08, 2021
Buy above 1.1860 (SMA 21), with take profit at 1,1901 and 1.1962 (4/8), stop loss below 1.1825.
Sell if pullback 1.1847 (SMA 21), with take profit at 1.1901 (3/8) and 1.1962 (4/8), stop loss above 1.1881
