Trading Signal for EUR/USD for August 10 - 11, 2021: Buy above 1.1718

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On Wednesday, August 4, the euro/dollar pair challenged the 3/8 Murray line located at 1.1901. Yet, it failed to break and consolidate above this level and from this point the euro made a retracement, forming a downward channel on the 1H charts.

The pair is reaching an oversold zone. The eagle indicator on the 1H chart shows an oversold signal and we can see that it is approaching the 0/8 Murray line that represents strong support.

After breaking the 200 EMA and the 21 SMA the euro followed a downtrend channel and fell to the low of 1.1730. Now, it is above this level. There is still no sign of a technical rebound.

The immediate support is at the 0/8 Murray zone located at 1.1718. We expect EUR/USD to consolidate at this level and make a technical bounce with targets at the 1/8 Murray line around 1.1779.

The US dollar index (USDX) remained strongly bullish, putting downward pressure on the EUR/USD pair. It received support from the yields of US Treasuries. The 10-year bond yield rose to 1.325%.

We expect consolidation around the 1.17 zone, which could end at the market open on Wednesday as investors are waiting for inflation data. An increase of 0.50% is expected. If this data comes out negative, it will be buyers' time and the euro could rise rapidly to the zone of 1.1840.

A sharp break above the downtrend channel and above the 21 SMA located at 1.1745 could ease the downward pressure. There could be a good buying opportunity for the EUR/USD pair, targeting 1.1779. If it breaks through this level, it could reach the area of the 200 EMA around 1.1840.

Support and Resistance Levels for August 10 - 11, 2021

Resistance (3) 1.1791

Resistance (2) 1.1775

Resistance (1) 1.1757

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Support (1) 1.1718

Support (2) 1.1688

Support (3) 1.1658

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Trading tip for EUR/USD for August 10 - 11, 2021

Buy if rebound 0/8 at 1.1718, with take profit at 1.1779 (1/8), stop loss below 1.1785

Buy if breaks 1.1745 with take profit at 1.1779 (1/8), and 1.1840 (2/8), stop loss below 1.1710.

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

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