At the opening of the American market we noticed that the EUR / USD pair is moving above the 21 SMA, and the 200 EMA on the 1 hour chart, the eagle indicator is giving a slight bullish signal in the short term.
The EUR / USD pair remains bullish, supported by additional fiscal stimulus from the Fed and the ECB. Furthermore, real interest rates continue to favor the euro area versus the US, which is also another factor supporting the euro in the medium term.
There is strong resistance in the 1.2308 area, this level the euro has tried to break twice (leaving a double top) and has failed, above this level a definitive break, we would expect the pair to make a maximum at 1.2354.
On the other hand, the SMA of 21 is located at 1.2260, if the euro remains above this level for the next few hours our recommendation is that you can buy the EUR / USD pair with targets at 1.2308.
On the contrary, a break of the 200 EMA that is at 1.2240, will give us a good opportunity to sell the EUR / USD, because it would mean a break of the uptrend channel and we could take advantage of the fall to the zone of 1.2207 there is the 8/8 of Murray and the 7/8 of Murray in 1.2146.
Market sentiment for today January 5, shows a figure of 62% compared to yesterday, we have noticed a slight decrease, which implies that the euro will not have much bullish strength above 1.23, so we could expect sales opportunities in the short term.
Support And Resistance Levels For January 05-06, 2021
Resistance (1) 1.2295
Resistance (2) 1.2345
Resistance (3) 1.2368
Support (1) 1.2237
Support (2) 1.2212
Support (3) 1.2165
Trading tip for EUR/USD for January 05-06, 2021
Buy if rebound SMA 21 at 1.2265, with take profit at 1.2308 and 1.2354, stop loss below 1.2230.
Buy if rebound at 1.2240, with take profit 1.2308 and 1.2354, stop loss below 1.2205.
Sell bellow 1.2235 ( EMA 200) with take profit at 1.2207 and 1.2146 (7/8), Stop loss above 1.2270.