Trading Signal for EUR/USD for September 01 - 02, 2021: Sell below 1.1805 (EMA 200)

Yesterday the EUR / USD pair reached the high of 1.1843 due to the cautious message of Powell and the pessimism that surrounds the US dollar. This level coincides with the resistance line of 4/8 of murray. At this moment, the pair is trading around the 200 EMA located at 1.1795.

The 4-hour chart shows that the pair remains above all of its moving averages, with the SMA of 21 and the EMA of 200, located below the current price, which could mean that the Euro could continue its uptrend in the coming days.

A break below the 21 SMA and 200 EMA, located around 1.1790, could change the market trend and the Euro could be bearish and could fall to the support of 0/8 Murray located at 1.1718.

The strong recovery of EUR / USD has found strong resistance at 4/8 of murray. This level is the key. Therefore, a pullback towards this level will be a good opportunity to sell.

EUR / USD was supported by the optimistic results as the German unemployment rate declined to 5.5% in August, while the Eurozone consumer price index was confirmed at 1.6% year-on-year in August.

On the contrary, a consolidation above 1.1840 could favor the recovery of the euro with the next target at 1.1901, the level of August 4. Higher it can reach 4/8 of murray at 1.1962.

Meanwhile, the medium-term outlook for EUR / USD is seen on the negative side, as long as it remains below the EMA of 200 in daily charts, located at 1.2000, the EUR/USD pair could continue its fall. So, every time it approaches this leve,l the downward pressure will intensify and it could be a good opportunity to sell.

Support and Resistance Levels for September 01 - 02, 2021

Resistance (3) 1.1962

Resistance (2) 1.1901

Resistance (1) 1.184

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Support (1) 1.1795

Support (2) 1.1772

Support (3) 1.1718

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Trading tip for EUR/USD for September 01 - 02, 2021

Sell ion case of a pullback at 1.1840 (2/8) with take profit at 1.1805 and 1.1772, stop loss above 1.1875.

Sell if the pair breaks at 1.1795 (EMA 200) with take profit at 1.1770 and 1.1718, stop loss above 1.1830.

The material has been provided by InstaForex Company - www.instaforex.com

from RobotFX