In the European pre-market, the EUR / USD pair is trading below the SMA of 21 and below the EMA of 200 according to the 4-hour chart. The pair is under selling pressure, given it has a downtrend line, which keeps the pair trading with a bearish bias, bouncing above the 1.20 psychological level.
The 1-hour chart shows that the Euro is facing a bearish continuation to the 4/8 Murray pivot, located at 1.1963. This level is important since 1.1928 is located at the 200 EMA in 4-hour charts, and it could be a good area for a bullish move.
We have drawn a bearish channel. If EUR / USD trades above this level in the next few hours, there could be an upward momentum to the 1.2065 and 1.2085 area. The latter is strong resistance, as it coincides with 6/8 of murray. Above 1.2085 it could give further bullish momentum to the zone of 1.2146.
This Friday the non-farm payrolls will be published in the United States, the markets are very attentive to this publication and we hope that a few days before there will be a consolidation between 1.20 and 1.2085.
The market sentiment report shows that there are 62.28% who are selling the EUR / USD pair. This is a sign that the bullish force still prevails in the market, and there could be an upward movement to the 1.2150 area.
Support and Resistance Levels For May 05 - 06, 2021
Resistance (1) 1.2052
Resistance (2) 1.2092
Resistance (3) 1.2107
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Support (1) 1.1986
Support (2) 1.1974
Support (3) 1.1924
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Trading Tip for EUR/USD for May 05 - 06, 2021
Buy if breaks 1.2030 (trend line) with take profit at 1.2052 and 1.2085 (6/8 of murray), stop loss below 1.2000
Sell below 1.2002 (5/8 of murray) with take profit at 1.1963 (4/8 of murray), stop loss above 1.2035.