In a 4-hour chart, the EUR / USD pair is trading above the 21 SMA, and below the 4-hour bearish channel, having hit the top for the third time at 1.1868. Now it is making a pullback.
At the time of writing, EUR / USD is trading at 1.1840 2/8 murray level, Fibonacci indicator has been traced, from low at 1.1779 (1/8) to high at 1.1868. There is likely to be a retracement to 61.8% at 1.1815.
Yesterday's euro rally came after the European Central Bank removed the 2% top from its inflation target, allowing price increases to be temporarily and moderately exceeded.
From a technical viewpoint, the recovery of EUR / USD lost strength as there is a bearish channel from the high of 1.1962 (4/8). The price has not been able to break and stay above the zone of 1.1870. It could now be making a correction to a further bullish wave to the resistance of 3/8 murray at 1.1901.
According to the 4-hour chart, we expect a retracement to the 61.8% (1.1815) Fibonacci. In this area, we recommend buying with targets at 1.1840 and 1.1901.
The eagle indicator is showing a bullish signal, which suggests that there is some way to go until the indicator signal shows overbought levels.
The market sentiment report shows that there are 54.10% of operators who are buying the pair. This is a sign that the Euro is in a consolidation phase and an upward movement could occur in the short term to the psychological level of 1.20.
Support and Resistance Levels for July 09 - 12, 2021
Resistance (3) 1.1937
Resistance (2) 1.1916
Resistance (1) 1.1872
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Support (1) 1.1798
Support (2) 1.1748
Support (3) 1.1712
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Trading tip for EUR/USD for July 09 - 12, 2021
Buy if rebound 61.8% at 1.1815, with take profit at 1.1840 and 1.1901 (3/8), stop loss below 1.1770.
