In the early hours of the American session, EUR/USD is trading at the level of 1.1734 according to a 4-hour chart, showing a slight downward correction. The pair has found some selling pressure in the 1.1750 area.
The 0/8 murray level located at 1.1718 is strong support. Since the 21 SMA is also located there, this area could be a technical bounce point for the EUR / USD pair. In addition to the downtrend line that was broken, it has now become an additional support.
The 4-hour chart shows that the euro is still under selling pressure since the 200 EMA, which is located at 1.1789, exerts pressure on the pair. Therefore, the pair needs to overcome this level and consolidate above so that the outlook could change to bullish for the euro in the short term.
Meanwhile, the medium-term outlook for EUR / USD is still negative. The daily chart shows that the 200 EMA is at the psychological level of 1.2000. As long as the price remains below this level, any bullish attempt for the euro will be considered a correction.
The expectation around the Jackson Hole symposium is growing with the focus on the keynote speech of Federal Reserve's Chairman Jerome Powell on Friday. Investors doubt that the central bank will begin to cut current stimulus plans due to the damage the pandemic is doing to the economic recovery.
The key level to watch is the 1.1718 area. A technical bounce around this level could be a buy signal with targets at 1.1750 and 1.1789 (200 EMA). The eagle indicator is generating a bearish signal. So, we must wait for those levels to be able to buy the Euro again.
Support and Resistance Levels for August 25 – 26, 2021
Resistance (3) 1.1786
Resistance (2) 1.1770
Resistance (1) 1.1748
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Support (1) 1.1710
Support (2) 1.1685
Support (3) 1.1641
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Trading tip for EUR/USD for August 25 - 26, 2021
Buy if the pair rebounds to 1.1718 (0/8) with take profit at 1.1750 and 1.1789 (EMA 200), stop loss below 1.1673.
