EUR/USD is trading above the SMA of 21 and above 1/8 of a murray. Both levels are giving immediate support to the pair. If it consolidates above this zone, the Euro could accumulate greater demand and beat the bearish channel top.
Traders are speculating about risky assets and they could shift focus away from the US dollar as a safe haven. The Euro could then gain momentum and reach the 1.1840, zone of 2/8 murray, and level of strong resistance.
The persistent aversion to risk has kept the market in a consolidation zone. Since July 7, the Euro has been trading between the levels of 1.1760 - 1.1860.
There are no major changes unless the EUR/USD breaks above 1.19. So, the bearish outlook could be revised. The 200 EMA is located in the 1.1901 zone which keeps the euro under downward pressure.
Therefore, any attempt to break the 1.19 area will be a good selling opportunity. Also the 2/8 murray level is now viewed as an important top. A pullback towards this level will give us a selling opportunity.
Our recommendation is to buy above the 1.1775 level. A diamond pattern has come into being. The pattern represents a bullish outlook for the EUR / USD pair in the short term with targets at 1.1840 and up to 1.1901.
Support and Resistance Levels for July 26 - 27, 2021
Resistance (3) 1.1894
Resistance (2) 1.1862
Resistance (1) 1.1816
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Support (1) 1.1753
Support (2) 1.1737
Support (3) 1.1705
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Trading tip for EUR/USD for July 26 - 27, 2021
Buy above SMA 21 at 1.1775, with take profit at 1.1810 and 1.1840 (2/8), stop loss below 1.1730.
Sell below 1.1840 (2/8), with take profit at 1.1803, stop loss above 1.1875.
