In the European pre-market, the EUR / USD pair is trading below the SMA of 21 and the EMA of 200 under downward pressure according to the 1-our chart. With immediate support in the zone of 4/8 of murray, the Eagle indicator is showing oversold signal.
The US NFP Nonfarm Payroll Report will be released this Friday. The economy is expected to have added 926,000 new jobs in April, while the unemployment rate is forecast to have dropped to 5.8% from 6% seen the previous month.
Undoubtedly this data will move the market and define the medium-term direction of the EUR / USD, given that the Euro has not been able to exceed the 1.2150 level, future rises are limited, whenever the pair wants to overcome the zone of 7/8 of murray, a reversal may occur.
As the Euro is trading below the 200 EMA in a 1-hour chart, and below the 6/8 Murray, which is considered a strong resistance. We expect a pullback towards this resistance level to be able to sell with targets at 1.1963 support. (4/8).
EUR / USD still maintain its psychological level which implies that there could be a correction movement to continue the downward movement.
The technical reading of the eagle indicator shows that it is approaching the oversold zone, and it is likely that there will be a bullish rebound in 1.2024, and if the key zone of 1.20 breaks, we expect a bounce at 1.1962 (4/8), that zone we will give a chance to buy.
The sentiment report shows that there are 61.80% of traders who are selling the EUR / USD pair. This is a sign that the euro could once again seek the 1.2150 zone in the short term.
Support and Resistance Levels For May 03 - 04, 2021
Resistance (1) 1.2062
Resistance (2) 1.2091
Resistance (3) 1.2163
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Support (1) 1.1980
Support (2) 1.1974
Support (3) 1.1961
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Trading Tip for GBP/USD for May 03 - 04, 2021
Sell if pullback 1.2085 (Strong resistance and 6/8 of murray) with take profit at 1.2024 (5/8) and1.1970 (4/8), stop loss above 1.2115.
Buy if rebound 1.1970 (Strong support and 4/8 of murray) with take profit at 1.2023 (5/8 of murray), stop loss below 1.1940.