In the American pre-market, the EUR / USD pair is trading at the low of 1.1770. The price is approaching the reversal level of 61.8% Fibonacci that matches strong support since on August 25. EUR/USD is about to make a technical rebound around this level.
The 61.8% Fibonacci level will be a good point to buy the EUR / USD pair because the bearish cycle could give a technical correction as the eagle indicator in 4-hour charts is approaching oversold levels.
According to the 4-hour chart, we can see that the euro is below the SMA of 21 and below the EMA of 200. It is a signal of a bearish scenario. In the next few hours, there could be a rebound technical up to the 200 EMA.
If the euro fails to consolidate above the 200 EMA, there could be a new bearish move that could take the price to the 61.8% Fibonacci level. If the downward pressure prevails, it could fall to 0/8 Murray located at 1,1718.
The key data of the week will be known on Tuesday the 14th with the US inflation data, which will attract great attention. If inflation remains high, the Federal Reserve would cut its bond buying program this year. This in turn could further weaken the EUR / USD pair and it could fall to the 1.15 level in the medium term.
Meanwhile, the short-term outlook for EUR / USD is on the downside, as long as it is trading below the strong resistance of 2/8 murray located at 1.1840. The decline is expected to continue in a sequence of new lows.
A consolidation above 2/8 Murray could be bullish for the Euro as it suggests that the market retracement towards the 61.8% Fibonacci zone is validating. It will be a good time to buy with targets at 3/8 around 1.1901 and the price could easily go up to the psychological level of 1.20.
Our outlook remains bearish. For now, we expect a technical bounce, then we can again sell around the 200 EMA or 2/8 murray, targeting 0/8 murray at 1.1718.
Support and Resistance Levels for September 13 - 14, 2021
Resistance (3) 1.1840
Resistance (2) 1.1825
Resistance (1) 1.1810
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Support (1) 1.1780
Support (2) 1.1760
Support (3) 1.1734
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Trading tip for EUR/USD for September 13 - 14, 2021
Buy above 1.1770 (Strong support), with take profit at 1.1805 and 1.1840 (2/8), stop loss below 1.1735.
Sell if pullback 1.1815 (EMA 200), with take profit at 1.1760 and 1,1718, stop loss above 1.1840.
