Last week, the EUR / USD pair managed to break the bearish channel, which kept it under pressure and was located below the SMA of 21. At the beginning of this week, the pair is located above the 2/8 of murray, showing a slightly upward bias and being released from negative pressure.
The market for today presents low volatility and a decrease in volume due to the holiday in the US since the country celebrates Independence Day. It keeps most of the markets closed. So, we could expect a range-bound market until the opening of the American session tomorrow.
According to the 4-hour chart, as EUR / USD is consolidating above the 21 SMA and the 2/8 Murray, the upward movement is expected to 1.1901 zone of 3/8 murray and could reach around 1.1962 (4/8).
On the contrary, a consolidation and break of 2/8 will be a sign of a bearish continuation with targets at 1.1730, 1/8 murray zone and the euro could continue its decline in the medium term to the level of 1.1600.
The American labor market has shown that the recovery remains healthy, job creation remains strong that has reinforced the patient stance of the Federal Reserve regarding a probable modification of the asset purchase program.
Market sentiment for today Monday shows that 56.47% of traders are buying the EUR / USD pair. We noticed a decrease in the number of buyers compared to the last week. The pair is likely to have found good support that could take it to the psychological level of 1.20 as long as it remains above 1.18.
Our recommendation is to buy above the 21 SMA or if it makes a technical bounce at 2/8 murray, buy in this zone with targets at 1.19 and 1.1962. The eagle indicator is slightly showing bullish signals.
Support and Resistance Levels for July 05 - 06, 2021
Resistance (3) 1.1958
Resistance (2) 1.1915
Resistance (1) 1.1890
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Support (1) 1.1848
Support (2) 1.1799
Support (3) 1.1755
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Trading tip for EUR/USD for July 05 - 06, 2021
Buy if rebound 2/8 of murray at 1.1840 , with take profit at 1.1901 (3/8), stop loss below 1.1805.
The material has been provided by InstaForex Company - www.instaforex.com