EUR/USD pair fell below the 2/8 Murray and below the 21 SMA and the 200 EMA. Currently, it is approaching the 1/8 Murray support around 1.1291, bottom of the downtrend channel formed on February 2.
Risk aversion dominates financial markets this week amid rising geopolitical tensions between Russia and Ukraine.
The negative feeling is increasing. Traders sold the euro below 1.1352 and took refuge in the US dollar due to rising concerns of an imminent invasion by Russia.
The Euro is currently in a key support zone. In the next few hours, we expect a technical bounce towards the top of the downtrend channel around 1.1352.
On the contrary, a sharp break and a close below 1.1280 on the daily chart could accelerate the fall of the euro towards 0/8 Murray in the area 1.1235.
On the upside, we should expect a daily close above 1.1360 and it will be the start of an uptrend with targets towards 4/8 Murray at 1.1474.
As long as the euro continues to trade below the 200 EMA on the 4-hour chart, this means that any bounce will be an opportunity to continue selling.
The eagle indicator is approaching the oversold zone. A bounce is likely to occur in the next few hours in order to resume the downtrend.
Support and Resistance Levels for February 22 - 23, 2022
Resistance (3) 1.1419
Resistance (2) 1.1365
Resistance (1) 1.1335
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Support (1) 1.1281
Support (2) 1.1251
Support (3) 1.1230
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Scenario
Timeframe H4
Recommendation: buy if rebound
Entry Point 1.1291
Take Profit 1.1352
Stop Loss 1.1240
Murray Levels 1.1474 (4/8), 1.1413(3/8), 1.1352 (2/8), 1.1291(1/8)
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