The EUR / USD pair is consolidating around 2/8 of a murray and is located within an uptrend secondary channel. If it bounces above 1.1596, it will be a good reason to continue buying. The bounce is limited by the upper border of the main bearish channel.
The 21 SMA acts as dynamic support and gives you the bullish outlook with a probability of a recovery in the coming days. If the pair breaks this level and consolidates below 1.1590, it will be a clear sign of a new bearish movement that could push the pair to the low of September 30 at 1.1560, and down to the psychological level of 1.1500.
The short-term outlook for EUR / USD is seen on the negative side. In the 4-hour chart, the pair is below the 200 EMA and below a downtrend channel that originated on September 13. Since then, the euro tends to fall each time it makes an impulse.
In the medium term, the 200 EMA is located at 1.1960 according to the daily chart. As long as it remains below this level, any recovery of the Euro will only be a correction for it to continue with its main downward movement.
On Friday, the non-farm payrolls will be published in the US. The US economy is expected to add 490K jobs in September. If this data comes out above what analysts expect, it will give a strong boost to the US dollar, and the Euro could fall to the level of 1.1500.
On the other hand, the market sentiment report shows 66.46% of operators who are buying the EUR / USD pair. We have seen an increase of 5.52% in recent days, which means that the euro could remain at current levels ranging or continuing its decline to 1.1500 in the short term.
Support and Resistance Levels for October 05 - 06, 2021
Resistance (3) 1.1644
Resistance (2) 1.1630
Resistance (1) 1.1616
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Support (1) 1.1564
Support (2) 1.1531
Support (3) 1.1515
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Trading tip for EUR/USD for October 05 - 06, 2021
Buy above 1.1596 (SMA 21) with take profit at 1.1637 and 1.1657 (3/8), stop loss below 1.1560.
The material has been provided by InstaForex Company - www.instaforex.com