In the American pre-market, the EUR / USD pair is trading at 1.1874. The chart is showing a bullish signal and EUR/USD is likely to continue its rise until the strong resistance of 3/8 of murray located at 1.1901. This level is the key where the price could face a strong barrier.
The uptrend channel on the 4-hour chart is guiding the movement of the pair. Therefore, the top of this channel coincides with the level of 1.1901. This level will now be the next resistance to challenge.
As long as EUR / USD is above the 200 EMA and above the 21 SMA, there is a probability that the pair will continue its rise in the short term to the psychological level of 1.20.
The medium-term outlook for the Euro is on the negative side, as long as it is below the 200 SMA on daily charts. Today, any attempt to approach 1.20 will be a good opportunity to sell.
Meanwhile, we can trade within the price range of 1.1901 and 1.1840. The lower border has now become strong support for the pair. Around this level, there will be a good opportunity to buy due to the lower line of the bullish channel and the 2/8 of murray.
In a few hours, the US government employment report will be published. The market consensus is for an increase in non-farm payrolls of 750,000, which would imply a decrease compared to the previous month. If the actual data comes out negative for the US dollar, there could be a rally in the price of EUR / USD and it could climb towards resistance of 1.1901.
On the contrary, if the data on the US labor market is positive for the dollar, a fall of ERU / USD could occur towards the 1.1840 support. There is the SMA of 21, which maintains the bullish outlook for the pair. At this level, it will be a good opportunity to buy with targets at 1.1901.
Support and Resistance Levels for September 03 - 06, 2021
Resistance (3) 1.1947
Resistance (2) 1.1930
Resistance (1) 1.1901
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Support (1) 1.1874
Support (2) 1.1846
Support (3) 1.1819
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Trading tip for EUR/USD for September 03 - 06, 2021
Sell in case of a pullback at 1.1901 (3/8) with take profit at 1.1840 and stop loss above 1.1936.
Buy if the pair rebounds at 1.1840 (2/8) with take profit at 1.1901 (3/8) and stop loss below 1.1805.
