In the early hours of the American session, the EUR / USD pair is trading around the SMA of 21, at 1.1867. It is retreating after having found resistance at the 3/8 murray line and at the top of the bullish channel on Friday from last week.
The Euro is falling due to the recovery of the USDX dollar index that is rebounding from its low of 91.91, supported by the yields of the Treasury bonds. The 10-year rate on the US bond is at 1.37%, very close to its August highs.
According to the chart, we can see that the EUR / USD has a support at the 2/8 murray line around 1.1840. At this level, the lower line of the bullish channel converges. A technical bounce around this zone will be a goodopportunity to buy.
A confirmation of a sharp break below the 2/8 murray and below the uptrend channel could signal an extension of the bearish correction, and the pair could fall to the support of the 200 EMA located at 1.1779.
The technical reading of the eagle indicator that measures the strength and volume of the market is showing a bearish signal. For this, we should expect a break and consolidation of the Euro below 1.1840 and thus be able to sell.
Our outlook will continue to be bullish, so we should expect a technical rebound in the 2/8 murray around 1.1840, this level will give us the opportunity to buy with targets at 1.1901.
Support and Resistance Levels for September 07 - 08, 2021
Resistance (3) 1.1929
Resistance (2) 1.1900
Resistance (1) 1.1881
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Support (1) 1.1851
Support (2) 1.1837
Support (3) 1.1802
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Trading tip for EUR/USD for September 07 - 08, 2021
Sell below 1.1870 (SMA 21), with take profit at 1.1840, stop loss above 1.1901.
Buy if rebound at 1.1840 (2/8 of murray), with take profit at 1.1901 (3/8), stop loss below 1.1805.
