The EUR / USD pair in the opening of negotiations of the American market, is quoting near the line of downward pressure that is drawn from its previous maximum until this last attempt to overcome the level of 1.23.
This level will be your last chance for eur / usd to break, if it fails to exceed this level we could see decline or correction for the next few days.
We can also see that the EUR / USD, is trading within its bullish trend channel in 4-hour charts, so if the SMA of 21 is broken, and the EUR / USD pair returns to trade below this level, we can sell with targets at the bottom of the bullish channel, and a break in the channel could accelerate the decline to the 1.2146 area, 7/8 murray level.
The market sentiment report for the EUR / USD shows that there are 69% of traders who are selling the EUR / USD pair, which represents that the upward force of the euro-dollar could prevail for longer, however, on the other hand the eagle indicator is giving a bearish signal, this means that an imminent correction could occur.
Support And Resistance Levels For January 04-05, 2021
Resistance (1) 1.2339
Resistance (2) 1.2367
Resistance (3) 1.2383
Support (1) 1.2250
Support (2) 1.2193
Support (3) 1.2165
Trading tip for EUR/USD for January 04-05, 2021
Sell bellow 1.2290 ( Strong resistance) with take profit at 1.2245 and 1.2146 (7/8), Stop loss above 1.2325.
Buy if rebound at 1.2245, with take profit 1.2268 and 1.2294, stop loss below 1.2210.