The EUR / USD pair on Monday's 1-hour chart shows oversold conditions, as it is trading at the base of the bearish channel and near the -2/8 Murray area of imminent rebound or correction.
Since Jerome Powell's speech Thursday, the dollar has strengthened received two additional boosts. First, February non-farm payrolls beat estimates with an increase of 379,000 jobs, in addition to the upward revisions of the previous months.
Another boost to growth prospects, yields and the dollar came from the Senate, which approved a modified version of the aid package for the coronavirus President Joe Biden, to be adopted on Tuesday.
On a technical level, we note that EUR / USD is trading below the 21 SMA and 200 EMA in 1 hour charts, under bearish pressure, and close to the 1.1840 support zone at -2 / level. Murray's 8.
It is likely that there will be an upward rebound above 1.1840, because the eagle indicator is in the oversold zone, a technical correction is imminent, as the USDX dollar index is reaching overbought levels.
Our recommendation is to buy above Murray's -2/8, located at 1.1840, with targets at the 21 SMA, due to the downward pressure, there may be a selling opportunity at this level.
Market sentiment for today shows 46.89% of traders who are selling the EUR / USD pair is a sign that in the short term, after a technical correction, the downward force will continue to prevail for the EUR / USD.
Support And Resistance Levels For March 08 - 09, 2021
Resistance (1) 1.1925
Resistance (2) 1.1958
Resistance (3) 1.2009
Support (1) 1.1829
Support (2) 1.1798
Support (3) 1.1750
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Trading tip for EUR/USD for March 08 - 09, 2021
Buy if rebound at 1.1940 or above 1.1865 (-2/8 of murray and strong support) with take profit at 1.1901, stop loss below 1.1805.
Sell if pullback at 1.1901 (SMA 21) with take profit at 1.1860 and 1.1840, stop loss above 1.1935.