EUR/USD is rising for the sixth day in a row, ahead of the US NFP report. The pair just hit the highest level since November 2021 at 1.1483.
Following the European Central Bank (ECB) meeting on Thursday, the euro began a bullish rally, which is still underway. Technically, it has reached the 4/8 Murray high zone of January 12th. This level is strong resistance and could act as a barrier for the Euro.
If the US nonfarm payrolls are positive for the US dollar, EUR/USD is expected to drop below 4/8 Murray. Then, there will be an opportunity to sell around 1.1482 with targets at 1.1413 and up to 1.1352.
The Eagle indicator is approaching an overbought area. It is likely to touch the 95-point level, then a technical correction will be imminent for the euro.
If you can see on the 4-hour chart the levels that the eagle indicator has touched at 95 and 5-points just in the reversal zone, this has been very successful, both for buying and selling.
So, we are confident that the euro could make a correction in the next few hours, as the eagle indicator supports our bearish strategy.
Given that the Euro is consolidating above the 200 EMA and above the 21 SMA, this drop will be seen as an opportunity to continue buying in the coming days.
The key level we can expect is a technical bounce around the 200 zone of EMA at 1.1334 or at 2/8 Murray at 1.1352.
Support and Resistance Levels for February 4 - 7, 2022
Resistance (3) 1.1567
Resistance (2) 1.1535
Resistance (1) 1.1501
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Support (1) 1.1427
Support (2) 1.1384
Support (3) 1.1352
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Scenario
Timeframe H4
Recommendation: sell bellow
Entry Point 1.1474
Take Profit 1.1413; 1.1352
Stop Loss 1.1503
Murray Levels 1.1291 (1/8) 1.1352 (2/8) 1.1413 (3/8) 1.1474 (4/8)
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