In the European session, the EUR / USD pair fell to the low of 1.1259. From this level, it is rebounding and is now approaching the SMA of 21 located at 1.1283. The overall trend continues to be bearish.
The US Dollar Index (#USDX) is trading around 96.09. This is an extremely overbought level. We expect that in the next few days, there will be a correction of the dollar which would enable EUR / USD to gain ground.
On the 1-hour chart, the pair is trading below a downtrend channel formed since November 9. A sharp break above this channel and a consolidation above the 21 moving average could be the start of a recovery movement and we could expect the euro to rise to the 200 EMA located at 1.1381.
According to the daily chart, the euro is oversold and has strong support at 4/8 of murray located at 1.1230. In the next few hours, if the euro falls to this level and rebounds, it will be a good opportunity to buy.
Our forecast in the next few hours for the euro is a consolidation above 1.1280. As long as EUR / USD is trading above this zone, we will have an opportunity to buy with the target at 1.1352. If 5/8 is broken, we could buy with targets at 1.1381 (200 EMA).
The market sentiment report for today, November 22, shows that there is 72.08% of operators who are buying the EUR / USD pair. This data provided a bullish sign and we could expect a recovery to 1.1381. Then, the price may again resume its downward movement with the target at 1.1116.
Support and Resistance Levels for November 22 - 23, 2021
Resistance (3) 1.1351
Resistance (2) 1.1330
Resistance (1) 1.1300
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Support (1) 1.1228
Support (2) 1.1177
Support (3) 1.1116
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A trading tip for EUR/USD for November 22 - 23, 2021
Buy if rebound around 1.1230 (4/8) with take profit at 1.1280 (bearish trend line) and 1.1381 (200 EMA), stop loss below 1.1190.
