Early in the American session, the Euro is trading at 1.1307 below the 200 EMA and above the support of 1.1291.
EUR/USD continues the downward correction from the year high at 1.1494 (Feb 10) and is now challenging the support at 1.1291(1/8).
In case the bullish sentiment returns to the market, the area of 1.1352 emerges as the initial barrier, where the 200 EMA and 21 SMA coincides.
A consolidation and close above 1.1360 on the daily chart could extend its upward move towards the 21 SMA located at 1.1397 and up to 4/8 Murray (triple top zone).
On the contrary, as long as EUR/USD remains trading below the 200 EMA located on the 4-hour chart, there is a possibility of a bearish continuation towards the support at 0/8 Murray 1.1230.
Despite the current weakness in the pair, the improving outlook appears to be underpinned by renewed speculation about a possible interest rate hike by the ECB sometime after the second quarter.
The market sentiment report shows that there are 50.41% of traders who are buying the EUR/USD pair. This is a mixed signal and the euro is likely to consolidate between the levels 1.1291 towards 1.1355 in the coming days.
Our trading plan is to buy the euro above 1.1291 with targets towards 1.1352. On the other hand, a pullback to 2/8 Murray at 1.1352 will be an opportunity to sell with targets at 1.1230.
Support and Resistance Levels for February 14 - 15, 2022
Resistance (3) 1.1413
Resistance (2) 1.1389
Resistance (1) 1.1352
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Support (1) 1.1306
Support (2) 1.1267
Support (3) 1,1230
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Scenario
Timeframe H4
Recommendation: Buy above if rebound
Entry Point 1.1291
Take Profit 1.1344; 1.1352
Stop Loss 1.1255
Murray Levels 1.1474 (4/8), 1.1413(3/8), 1.1352 (2/8), 1.1291 (1/8)
Alternative scenario
Timeframe H4
Recommendation: sell if it pullback
Entry Point 1.1344
Take Profit 1.1291; 1.1230
Stop Loss 1.1385
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