Yesterday, EUR / USD reached the support of 1/8 of murray at 1.1528, the level of July 22, 2020. The euro is falling due in part to the strength of the US dollar. The greenback is picking up steam in anticipation of the official employment report from the United States. The ADP pollster released the figure of 568,000 in September, which could be a positive sign ahead of the official US non-farm payroll report scheduled for Friday.
The euro could extend its weakness. For this, EUR/USD should consolidate below 1.1535. This is the 1/8 murray level that now acts as a key support. If the pair remains above this, it will be a reversal signal and in the next few hours there could be a technical rebound.
The eagle indicator yesterday touched the imminent bounce level at 5 points. This could be a sign of a technical correction and the euro could recover from the negative pressure and rise to the area of the 21 SMA located at 1.1596.
We believe that in the coming days the euro could recover only if it remains above the psychological level of 1.1500 and above 1.1535. On the contrary, if the downward pressure prevails, a fall is expected to the level of 1.1474, where the level of 0/8 murray is located and it could be a point of a technical rebound and at the same time a good opportunity to buy.
Meanwhile, if the euro consolidates above 1.1535, we can continue buying with targets at 1.1596 level of 2/8 murray and the top of the bearish channel formed in the 4-hour chart. A sharp break and consolidation above of this channel could be a sign that market sentiment is changing and the euro could rise to the EMA of 200 located at 1.1718.
Our short-term strategy is to buy above 1.1535 with targets at 1.1596 and 1.1718. If the euro falls and consolidates below 1/8 of a murray, we should avoid buying and it will be better to wait for a bounce at 0/8 by murray. The eagle indicator is showing an imminent bounce in the next few hours.
Support and Resistance Levels for October 07 - 08, 2021
Resistance (3) 1.1633
Resistance (2) 1.1592
Resistance (1) 1.1560
Support (1) 1.1526
Support (2) 1.1487
Support (3) 1.1462
Trading tip for EUR/USD for October 07 - 08, 2021
Buy above 1.1535 (1/8) with take profit at 1.1596 and 1.1718 (4/8 - EMA 200), stop loss below 1.1500.The material has been provided by InstaForex Company - www.instaforex.com