The EUR / USD found strong resistance at the 2/8 murray zone around 1.1840. From that level, it is retreating, and the support of the 21 SMA located at 1.1795 is likely to give it a technical bounce. The euro continues its lateral movement from the low of 1.1755 to 1.1840.
Prior to the Federal Reserve's decision, the Euro could consolidate above the 21 moving average, so that the Euro does not lose its bullish outlook. It should trade above the 1.1800 level.
On the contrary, below the SMA of 21, 1/8 of a murray is seen as an immediate support. If the Euro breaks this level below 1.1775, there could be a fall towards the support zone of 0/8 of Murray located at 1.1718.
The market is set to trade with low volatility in anticipation of the FED's verdict. Investors are waiting for the words and the signals on when the discussions could intensify about a reduction of the bond-buying program.
From a medium-term outlook, EUR / USD continues to be bearish. The 200 EMA located at 1.1880 that keeps the Euro under pressure. An upward attempt to challenge this level could change the trend of the Euro so that the currency pair could reach the psychological level of 1.20.
Our recommendation is to buy EUR/USD above the zone of 1.1790 with targets at 2/8 of murray (1.1840). On the contrary, a break below 1.1775 will be a good selling opportunity with targets at 1.1720.
Support and Resistance Levels for July 28 - 29, 2021
Resistance (3) 1.1872
Resistance (2) 1.1862
Resistance (1) 1.1845
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Support (1) 1.1774
Support (2) 1.1737
Support (3) 1.1713
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Trading tip for EUR/USD for July 28 - 29, 2021
Buy above SMA 21 at 1.1790, with take profit at 1.1840 and 1.1872 (EMA 200), stop loss below 1.1755.
Sell below 1.1775 (1/8), with take profit at 1.1720 (0/8), stop loss above 1.1810.
The material has been provided by InstaForex Company - www.instaforex.com